The Flour Power Bakery makes 200 cherry cheesecakes at a cost of $2.45 each. If a spoilage rate of 5% is anticipated, at what price should the cakes be sold to achieve a 40% markup based on cost?

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  1. since 5% are spoiled she will have only 95% of 200 or 190 pies to sell.

    cost = 2.45(200) = $490

    so her return must be 490(1.4) or $686 to make a 40% profit

    selling price per pie = 686/190 = $3.61

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  2. wrong

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