question 5 (5 points) saved listen brownies cost $.79 each. the bakery wants a 60% markup on cost. they…

question 5 (5 points) saved listen brownies cost $.79 each. the bakery wants a 60% markup on cost. they assume that 10% of what they make will spoil and will not be sold. what should the bakery price each brownie for sale? total quantity of brownies made were 20. the bakery should price $1.40 per brownie

question 5 (5 points) saved listen brownies cost $.79 each. the bakery wants a 60% markup on cost. they assume that 10% of what they make will spoil and will not be sold. what should the bakery price each brownie for sale? total quantity of brownies made were 20. the bakery should price $1.40 per brownie

Answer

Explanation:

Step1: Calculate cost with markup

The cost per brownie is $0.79. With a 60% markup on cost, the new - cost per brownie is $0.79\times(1 + 0.6)=0.79\times1.6 = 1.264$.

Step2: Account for spoilage

Let the selling price per brownie be $x$. Assume 20 brownies are made, 10% spoil, so 90% or $20\times0.9 = 18$ are sold. The total cost for 20 brownies is $20\times1.264$. The total revenue from selling 18 brownies is $18x$. We want the revenue from the sold brownies to cover the total cost. So, if we consider the cost of making 20 brownies and selling 18, we have the equation: $18x=20\times1.264$. Solving for $x$, we get $x=\frac{20\times1.264}{18}=\frac{25.28}{18}\approx1.40$.

Answer:

$1.40$