The production costs for 4 lollies is 9.55 strawberry, 8.70 orange, 9.99 grape, 6.30 bubblegum. The packaging is the same for all lollies at 5.00 per lolly. Owners like to add 25% markup on their stock.
Calculate the retail price of the strawberry lolly.
Is packaging included in production cost?
[ (9.55/4) + 5 ] 1.25
To calculate the retail price of the strawberry lolly, we need to consider the production cost, the packaging cost, and the markup percentage.
First, let's determine the total production cost for the strawberry lolly. The production cost includes the cost of the strawberry flavor and the packaging cost.
The cost of strawberry = $9.55
The packaging cost = $5.00
Next, let's calculate the markup on the production cost. The markup is typically added as a percentage of the production cost.
Markup percentage = 25%
Markup amount = (25/100) * (cost of strawberry + packaging cost)
Now, we can calculate the total cost of the strawberry lolly by adding the production cost and the markup amount.
Total cost of strawberry lolly = cost of strawberry + packaging cost + markup amount
Finally, we will have the retail price by adding the total cost of the strawberry lolly and the packaging cost.
Retail price of the strawberry lolly = total cost of strawberry lolly + packaging cost
Therefore, the retail price of the strawberry lolly can be calculated using the provided information.