A baker makes 500 cream-filled eclairs at a cost of $0.72 each. He estimates that 10% of the eclairs will be sold the following day at a reduced price of $0.80 each. Find the marked price if the baker wishes to obtain a 75% markup on cost.

Question

A baker makes 500 cream-filled eclairs at a cost of $0.72 each. He estimates that 10% of the eclairs will be sold the following day at a reduced price of $0.80 each. Find the marked price if the baker wishes to obtain a 75% markup on cost.

A. $1.27

B. $1.31

C. $1.33

D. $1.45

Answer 1

cost: 500*.72 = 360

needed revenue: 360*1.75 = 630
discounted eclairs bring in 500(.10)(.80) = 40
So, the remaining 450 eclairs must bring in $590, so

590/450 = $1.31 each