Carmen wants to add to her menu by selling BLT sandwiches. How much should she charge for the BLT if she would like to make 35%-40% profit on each BLT? Show how you know your pricing is correct.
Costs for ingredients for 4 BLTs:
Bread $6.20
Bacon $4.25
Lettuce $1.25
Tomato $3.50
Chips $3.50
the $18.75 cost for 4 BLT's come out to $4.675 per sandwich
So, she needs to charge between
1.35 * 4.675 and 1.40 * 4.675
I am being told the answer is: between $7.40-$8.08. Just not sure how they came up with that.
Also the lettuce price should be $1.80.
Thank you again for the help.
so add 55 cents to the total for a sum of 19.30, or 4.925 per BLT
The sale price p must then satisfy
1.35 * 4.925 <= p <= 1.40 * 4.925
I also don't know how they got their answer.
7.40/1.35 = 5.48
8.08/1.40 = 5.77
Those should be the same value.
To determine the price Carmen should charge for the BLT sandwiches in order to make a 35%-40% profit, we can start by calculating the total cost of the ingredients for 4 BLTs:
Total cost of ingredients = Cost of bread + Cost of bacon + Cost of lettuce + Cost of tomato + Cost of chips
= $6.20 + $4.25 + $1.25 + $3.50 + $3.50
= $18.70
Next, we need to determine the desired profit percentage on each BLT. Since Carmen wants to make a profit of 35%-40% on each BLT, we can take the average of these percentages:
Average profit percentage = (35% + 40%) / 2
= 75% / 2
= 37.5%
Now, to calculate the selling price, we'll use the formula:
Selling price = Cost price + (Cost price * Profit percentage)
Plugging in the values:
Selling price = $18.70 + ($18.70 * 0.375)
= $18.70 + $7.0125
= $25.7125
Therefore, Carmen should charge approximately $25.71 for each BLT sandwich in order to achieve a 35%-40% profit on each one.
To verify the pricing, Carmen can cross-check the calculations by using the selling price to calculate the profit percentage:
Profit = Selling price - Cost price
= $25.71 - $18.70
= $7.01
Profit percentage = (Profit / Cost price) * 100
= ($7.01 / $18.70) * 100
≈ 37.5%
As the profit percentage matches the target profit range of 35%-40%, we can conclude that the pricing is correct.