Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chicken dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated. At what price should the dinners be sold to achieve a 60% markup based on selling price?

Answer 1

Cost = 80*3.50 = $280.

0.9*80 = 72 Sold.

72*P = 1.6*280
P = $6.22 = Selling price per dinner.