Sammy is a baker who wants to make a profit on his baked goods. If it costs him $4.80 to make a dozen cupcakes, how much should he mark up the cupcakes to make a 30% profit?
A
$2.36
B
$0.48
C
$6.24
D
$1.44
To determine how much Sammy should mark up the cupcakes, we first need to calculate the total cost of making one cupcake.
Since it costs him $4.80 to make a dozen cupcakes, the cost of making one cupcake is $4.80 / 12 = $0.40.
To make a 30% profit, Sammy needs to add 30% of the cost of making one cupcake ($0.40 * 30% = $0.12) to the cost.
Therefore, Sammy should mark up the cupcakes by $0.12.
The correct answer is B) $0.48.