Ginger & Mary-Anne's Bakeshop makes triple chocolate brownies that cost $1.50 each. Past experience shows that 20% of the brownies will spoil. Assuming May wants a 40% markup based on cost and produces 200 brownies, what should each brownie sell for?
cost 200*1.50 = 300
brownies sold: .80 * 200 = 160
So you need to charge x per brownie so that
160x = 300 * 1.40
now finish it off
Ah, the delicious world of brownies. Let me crunch some numbers for you.
First, we need to know how many brownies will spoil. With a 20% spoilage rate, we can wave goodbye to 40 of those sweet treats. That leaves us with 160 brownies that will make it to eager mouths.
Now, May wants to apply a 40% markup, based on the cost. Since each brownie costs $1.50 to make, we'll need to add 40% of that cost. So, 40% of $1.50 is $0.60 (now I feel like a mathematician).
Adding the markup, we get $1.50 + $0.60 = $2.10.
Therefore, each brownie should sell for $2.10 to satisfy May's 40% markup, and hopefully, satisfy your sweet tooth as well.
To calculate the selling price for each brownie, we need to consider the cost and the desired markup.
Step 1: Calculate the total cost of producing the brownies.
The cost of producing each brownie is $1.50. Since 20% of the brownies will spoil, we need to account for that cost.
Total cost = Cost per brownie * Number of brownies
Total cost = $1.50 * 200
Total cost = $300
Step 2: Calculate the markup based on cost.
May wants a 40% markup based on the cost of producing the brownies.
Markup amount = Total cost * Markup percentage
Markup amount = $300 * 40%
Markup amount = $120
Step 3: Determine the selling price.
The selling price is calculated by adding the total cost and the markup amount.
Selling price = Total cost + Markup amount
Selling price = $300 + $120
Selling price = $420
Step 4: Calculate the selling price per brownie.
To find the price per brownie, divide the total selling price by the number of brownies.
Price per brownie = Selling price / Number of brownies
Price per brownie = $420 / 200
Price per brownie = $2.10
Therefore, each brownie should be sold for $2.10.
To determine the selling price per brownie, we need to consider the cost, spoilage rate, and desired markup.
1. Start by calculating the cost of each brownie:
Since Ginger & Mary-Anne's Bakeshop sells the triple chocolate brownies for $1.50 each, this represents the cost price.
2. Determine the number of spoiled brownies:
Given that past experience shows a spoilage rate of 20%, we can calculate the number of spoiled brownies as follows:
Spoiled brownies = 20% of 200 brownies = 0.2 * 200 = 40 brownies.
3. Calculate the total cost of producing non-spoiled brownies:
As 40 brownies will spoil, we subtract that from the total number of brownies produced:
Non-spoiled brownies = 200 - 40 = 160 brownies.
4. Determine the total cost of producing non-spoiled brownies:
To find the total cost of producing the non-spoiled brownies, we multiply the cost per brownie by the number of non-spoiled brownies:
Total cost = Cost of each brownie * Non-spoiled brownies = $1.50 * 160 = $240.
5. Calculate the desired markup:
May wants a 40% markup based on the cost price. To determine the markup amount, we multiply the cost by the markup percentage:
Markup amount = Total cost * Markup percentage = $240 * 40% = $240 * 0.40 = $96.
6. Determine the selling price per brownie:
To find the selling price per brownie, we add the cost and the markup amount:
Selling price = Cost + Markup amount = $240 + $96 = $336.
Therefore, each brownie should sell for $3.36.