200 * 1.60 = $320 = Total cost.
Selling price = $P.
(0.4*200)cookies * 1.50/cookie = $120 Received for broken cookies.
(0.6*200)P + 120 = 1.35*320,
120P + 120 = 432, P = $2.60 each.
Arley’s Bakery makes fat-free cookies that cost $1.60 each. Arley expects 40% of the cookies to fall apart and be discarded. Arley wants a 35% markup on cost and produces 200 cookies. Assume that Arley can sell the broken cookies for $1.50 each. What should Arley price each cookie? (Round your answer to the nearest cent.)
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