Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chicken dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated. At what price should the dinners be sold to achieve a 60% markup based on selling price?
Cost = 80*3.50 = $280.
0.9*80 = 72 Sold.
72*P = 1.6*280
P = $6.22 = Selling price per dinner.
To find the price at which the dinners should be sold to achieve a 60% markup based on the selling price, we need to calculate the total cost of producing them and then apply the desired markup.
First, let's calculate the total cost of producing the chicken dinners. The cost per dinner is $3.50, and 80 dinners were made. So the total cost is 3.50 * 80 = $<<3.50*80=280>>280.
Next, let's calculate the anticipated spoilage rate. The spoilage rate is given as 10%, which means 10% of the chicken dinners will not be suitable for sale. So the number of dinners that can be sold is 80 - (10% of 80) = 80 - (0.10 * 80) = 80 - 8 = 72.
Now, let's calculate the desired selling price to achieve a 60% markup based on the selling price. The markup is 60%, which means we want to sell the dinners at a price that is 60% above the cost. To find this price, we can use the following equation: Selling price = Cost + Markup.
The cost is $280, and the markup can be calculated as a percentage of the selling price. Let's denote the desired selling price as X. Therefore, the markup can be expressed as 60% of X, or 0.60 * X.
Putting it all together, we can write the equation:
X = $280 + (0.60 * X)
To solve for X, we can simplify the equation:
X - 0.60 * X = $280
0.40 * X = $280
X = $280 / 0.40
X = $700
So, the dinners should be sold at a price of $700 to achieve a 60% markup based on the selling price.