A local Dunkin donuts makes blueberry muffins that cost $.69 each to make. Past experience shows that 15% of the muffins will spoil and have to be discarded. Assuming this donut shop wants a 30% markup based on cost and produces 200 muffins, each muffin should sell for:

Answer: $1.06 What is the formula? How to solve this?

cost to make the 200 muffins = 200(.69) =$ 138

so profit with 30% markup = 1.3(138) = $179.4

but they can only sell 85% of the muffins or
.85(200) = 170

so selling price of each of the 170 muffins
= 179.4/170 = 1.055

They should sell each muffin at $1.06

I really did not use a "formula" since there was no variable defined .

Well, to find out the selling price of the muffins, we can use the formula:

Selling Price = Cost Price + (Cost Price * Markup Percentage)

In this case, the cost price of each muffin is $0.69. The markup percentage is 30%, so we can express it as 0.30.

Thus, the formula becomes:

Selling Price = $0.69 + ($0.69 * 0.30)

Now, we need to consider the spoilage rate. If 15% of the muffins spoil, we multiply the total cost by (1 - 0.15) to account for the discarded muffins.

So, the final formula becomes:

Selling Price = ($0.69 + ($0.69 * 0.30)) / (1 - 0.15)

Using this formula, we can calculate the selling price:

Selling Price = ($0.69 + ($0.69 * 0.30)) / (1 - 0.15)
Selling Price = ($0.69 + $0.207) / 0.85
Selling Price = $0.897 / 0.85
Selling Price ≈ $1.06

Therefore, based on the given information, each muffin should sell for approximately $1.06.

To calculate the price at which each muffin should be sold, you can use the following formula:

Selling Price = Cost + Markup

First, let's find the cost of producing each muffin. According to the information given, each muffin costs $0.69 to make.

Next, we need to determine the markup. The donut shop wants a 30% markup based on the cost. To calculate the markup, you can use the formula:

Markup = Cost × Markup Percentage

Markup Percentage = 30% = 0.30 (in decimal form)

Now we can plug in the values and calculate the markup:

Markup = $0.69 × 0.30 = $0.207

Finally, we can calculate the selling price by adding the cost and markup:

Selling Price = $0.69 + $0.207 = $0.897

However, we are given that 15% of the muffins spoil and have to be discarded. So, to cover the cost of spoilage, we need to adjust the selling price.

Adjusted Selling Price = Selling Price / (1 - Spoilage Percentage)

Spoilage Percentage = 15% = 0.15 (in decimal form)

Adjusted Selling Price = $0.897 / (1 - 0.15) = $0.897 / 0.85 = $1.0576 (rounded to 4 decimal places)

So, each muffin should be sold for approximately $1.06.

To find out how much each muffin should be sold for, you can use the following formula:

Selling Price = Cost + Markup

1. First, calculate the cost of a single muffin. Given that it costs $0.69 to make each muffin, the cost of one muffin will be $0.69.

2. Next, you need to determine the desired markup. Since the donut shop wants a 30% markup based on the cost, you need to calculate 30% of the cost of one muffin (0.30 * $0.69). This will give you the amount of additional profit the shop wants to make on each muffin.

3. Add the markup amount to the cost of one muffin to calculate the selling price:

Selling Price = $0.69 + (0.30 x $0.69)

4. Simplify the equation:

Selling Price = $0.69 + $0.207

5. Add the two values:

Selling Price = $0.897

However, to account for the 15% of muffins that spoil and have to be discarded, you need to adjust the selling price.

6. Calculate the number of muffins that will not spoil by subtracting 15% from the total number of muffins:

Number of non-spoiled muffins = 200 - (0.15 x 200)

7. Calculate the adjusted selling price by dividing the total cost (including spoiled muffins) by the number of non-spoiled muffins:

Adjusted Selling Price = Selling Price / (Number of non-spoiled muffins / Total number of muffins)

8. Plug in the values and solve the equation:

Adjusted Selling Price = $0.897 / (170 / 200)

9. Calculate:

Adjusted Selling Price = $0.897 / 0.85

10. Simplify:

Adjusted Selling Price = $1.06

Therefore, each muffin should be sold for $1.06 to account for the desired markup and the anticipated spoilage rate.