Business Math

The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells dinners at an 80% markup based on cost. They decided to offer a $1.00 off coupon in a newspaper advertisement. What markdown percentage does this coupon represent? Round to nearest tenth of a percent

  1. 👍 0
  2. 👎 0
  3. 👁 123
asked by Joan
  1. Cost = 40*3.20 + 0.2*40*3.26 = $153.60

    P=153.6 + 0.8*153.6 = $276.48 = Selling
    price for 40 dinners.

    276.48/40 = $6.91 Each.

    (6.91-1.00)/6.91 = 85.5%

    % Markdown = 100%-85.5% = 14.5%

    1. 👍 0
    2. 👎 0
    posted by Henry
  2. Correction:

    Cost = 40 * 3.20 = $128

    A = 128 + 0.8*128 = $230.40 = Amt. to be
    received.

    (40-8)dinners * $D/dinner = 230.40
    32D = 230.40
    D = $7.20/dinner.

    (7.20-1.00)/7.20 = 0.861 = 86.1%

    % Markdown = 100 - 86.1 = 13.9

    1. 👍 0
    2. 👎 0
    posted by Henry

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by Mike on March 5, 2014
  2. Math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by jnet on February 28, 2014
  3. college busines math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by jessica on March 1, 2014
  4. math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by Anonymous on March 1, 2014
  5. Math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by Christina on August 31, 2014
  6. math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by Kathy on May 31, 2014
  7. math

    The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup

    asked by Chris on March 2, 2014
  8. Business Math

    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

    asked by Wilma on August 28, 2013
  9. math

    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

    asked by Beth on May 30, 2013
  10. math

    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

    asked by codey on June 1, 2013

More Similar Questions