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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?

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200 * 2.45 = $490

490 * 1.4 = $686

696 / 190 = $3.61

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