Straub's Bakery makes 200 Danish cakes that cost $2.70 each. Straub's needs a 66% markup on cost and normally discards 10% of what it makes. At what price should Straub's sell the Danish cakes?
cost to make the cakes
= 200(2.7)= 540
To make a profit of 66% she needs 1.66(540) = 896.40
But she discards 10% of her cakes, so only sells 180
Selling price = 896.4/180 = $ 4.98
check:
profit = 4.98(180) - 540 = 356.40
rate of profit = 356.4/540 = .66 or 66%
Well, Straub's want to make a 66% markup on the cost of the cakes. So, let me just grab my calculator and do some quick calculations... *beep boop beep* Oh dear, it seems I've forgotten my calculator. Let's do some good old-fashioned clown math instead!
The cost of each Danish cake is $2.70. Now, to calculate a 66% markup on the cost, we simply multiply $2.70 by 66%. Alright, let's see... *imaginary calculations* Ah, got it!
$2.70 + 66% = Your Guess Is as Good as Mine.
Now, Straub's also mentioned that they normally discard 10% of what they make. Well, I suppose they don't want to throw away money, so let's subtract 10% from the final price.
Your Guess Is as Good as Mine - 10% = My Memory Just Slipped, Sorry.
So, my final answer is... um, I seem to have forgotten what I was calculating. But hey, I guarantee it will be a price that even the Danish pastries themselves would find delightful!
To determine the selling price for the Danish cakes, we need to follow these steps:
Step 1: Calculate the total cost of making the Danish cakes.
Total Cost = Number of Danish cakes * Cost per cake
Total Cost = 200 * $2.70
Total Cost = $540
Step 2: Determine the desired markup on cost.
Markup on Cost = Total Cost * Markup Percentage
Markup on Cost = $540 * 66%
Markup on Cost = $356.40
Step 3: Calculate the desired selling price (including the markup).
Selling Price = Total Cost + Markup on Cost
Selling Price = $540 + $356.40
Selling Price = $896.40
Step 4: Take into account the discarded amount.
Final Selling Price = Selling Price / (1 - Discard Percentage)
Final Selling Price = $896.40 / (1 - 10%)
Final Selling Price = $896.40 / 0.9
Final Selling Price = $996
So, Straub's should sell the Danish cakes for $996 each.
To determine the selling price for the Danish cakes, we need to consider the cost, the desired markup percentage, and the percentage of cakes that will be discarded.
First, let's calculate the cost of producing the Danish cakes:
Cost per cake = $2.70
Next, we'll calculate the markup price (also known as the desired profit margin):
Markup percentage = 66%
Markup price per cake = Cost per cake * Markup percentage
To find the selling price, we need to add the markup price to the cost per cake:
Selling price per cake = Cost per cake + Markup price per cake
However, we also need to account for the 10% of cakes that will be discarded. This means we should distribute the 10% loss on the selling price among the remaining 90% of cakes.
Let's proceed with the calculations:
1. Calculate the markup price:
Markup price per cake = $2.70 * 66% = $1.78
2. Calculate the selling price:
Selling price per cake = $2.70 + $1.78 = $4.48
3. Adjust for the discarded cakes:
Total cakes produced = 200
Discarded cakes = 10% of 200 = 0.10 * 200 = 20
Cakes available for sale = Total cakes produced - Discarded cakes = 200 - 20 = 180
4. Adjust the selling price for the discarded cakes:
Adjusted selling price per cake = Selling price per cake / (1 - Discarded cakes percentage)
Adjusted selling price per cake = $4.48 / (1 - 0.10) = $4.48 / 0.9 = $4.98 (rounded to the nearest cent)
Therefore, Straub's Bakery should sell the Danish cakes for approximately $4.98 each to accommodate the desired markup, cover the production cost, and account for the discarded cakes.