SOLUTION: Sweets Bakery makes fat-free cookies that cost $1.70 each to prepare. Sweets expects 20% of the cookies to be imperfect. Sweets wants a 40% markup on cost and produces 150 cookies.

Question 1116089: Sweets Bakery makes fat-free cookies that cost $1.70 each to prepare. Sweets expects 20% of the cookies to be imperfect. Sweets wants a 40% markup on cost and produces 150 cookies. Assume that Sweets can sell the broken cookies for $1.60 each. What should Sweets charge for each cookie?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Sweets Bakery makes fat-free cookies that cost $1.70 each to prepare. Sweets expects 20% of the cookies to be imperfect. Sweets wants a 40% markup on cost and produces 150 cookies. Assume that Sweets can sell the broken cookies for $1.60 each. What should Sweets charge for each cookie?
Equations::
p + i = 150 cookies
p = 0.8*150 = 120 perfect cookies
i = 0.2 150 = 30 imperfect cookies
cost = 1.7*170 = $289
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Let "x" be the cost of each perfect cookie
revenue:: 120x + 30*1.6 = 1.4*289
120x + 48 = 404.6
120x = 356.6
x = $2.97
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Cheers,
Stan H.
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