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Angie’s Bake Shop makes birthday chocolate chip cookies that cost $3 each. Angie expects that 12% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 150 cookies. What should Angie price each cookie? (Round your answer to the nearest cent.)

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Kolawole845

Answer:

Price per cookie $5.5

Explanation:

The cost per cookies inclusive of wastage

$3× 100/(100-12)

=$3.409

Total cost  for  150 units

= 150× 43.409

= $511.36

Total sales value for 150 units

=  $511.36 + (60% × 511.36)

= $818.1818

Selling price per unit

=$818.18/150 units

= $5.5

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