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?

Answer 1

Cost = 200*2.45 = $490.

0.95*200 = 190 Sold.

190*P = 1.40*490
P = $3.61 = Selling price per cake.