Maria is a baker. Her cost to make a loaf of bread is $4.00. She sells her loaves of bread to local grocery stores at a price which includes a 20% markup for profit. The grocery stores then sell the loaves of bread at a price which includes an additional 25% for their profit.
What is the price of one of Maria's loaves of bread at a grocery store?
A.
$5.80
B.
$6.00
C.
$4.45
D.
$5.00
To find the price of one of Maria's loaves of bread at a grocery store, we need to consider the markup for profit at both Maria's level and the grocery store's level.
First, let's calculate Maria's selling price with a 20% markup:
Cost of making a loaf of bread = $4.00
Markup for profit = 20% of $4.00 = $0.80
Selling price at Maria's level = $4.00 + $0.80 = $4.80
Now, let's calculate the grocery store's selling price with an additional 25% markup:
Grocery store's selling price = $4.80 + 25% of $4.80
Grocery store's selling price = $4.80 + $1.20
Grocery store's selling price = $6.00
Therefore, the price of one of Maria's loaves of bread at a grocery store is $6.00. The answer is B. $6.00.