posted by Beth
Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chicken dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated. At what price should the dinners be sold to achieve a 60% markup based on selling price
80 entrees cost $280
You only get to sell 72, due to spoilage.
You want your costs to be only 40% of the selling price.
280 = .4s
s = 700
So, to sell 72 entrees for $700, you need to charge $9.72 each.