Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chick dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated.

Question

Question 1: At what price should the dinner be sold to achieve 60% markup based on selling price?

Question 2: If Epicure offers a $1-off coupon in a newspaper advertisement, what markdown percent does the coupon represent?

Answer 1

#1
we want to find p such that
(80)(0.90)p = 80(3.50)(1.60)

#2
assuming the retail price p above, we want to find q such that

q = 1/p * 100