2.45*1.4/.95 = 3.61
Check:
5% (10) spoiled, so 190 sold
cost of 200 = 490
revenue = 190*3.61 = 686 = 490*1.4
The Flour Power Bakery makes 200 cherry cheesecakes at a cost of $2.45 each. If a spoilage rate of 5% is anticipated, at what price should the cakes be sold to achieve a 40% markup based on cost
2 answers
cost= 490 (200*2.45)
Total Estimated SP based on 40%Mcost= 490(100%+40%)=490(1.40)=686
spoilage= 5%= 200*.05=10
SP= Estimated SP/total qty-anticipated spoilage
SP= 686/(200-10)= 686/190=$3.61
Total Estimated SP based on 40%Mcost= 490(100%+40%)=490(1.40)=686
spoilage= 5%= 200*.05=10
SP= Estimated SP/total qty-anticipated spoilage
SP= 686/(200-10)= 686/190=$3.61