Arley’s Bakery makes fat-free cookies that cost $1.90 each. Arley expects 20% of the cookies to fall apart and be discarded. Arley wants a 50% markup on cost and produces 200 cookies. What should Arley price each cookie? (Round your answer to the nearest cent.)

Answer 1

You need to do this in steps.
1) Figure out how many cookies you get when 20% must be discarded
2) Take the remaining cookies and work on the mark up.

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