Problema Solution
Epicure Market prepares fresh gourmet entrees each day. On Wednesday, 80 baked chick dinners were made at a cost of $3.50 each. A 10% spoilage rate is anticipated. At what price should the dinner be sold to achieve 60% markup based on selling price?
Answer provided by our tutors
Cost Price of 80 chickens = 80 * 3.5 = 280
Effective cost Price = spoilage + 280 = 10% of 280 + 280 = 308
Profit = 60%
Profit of 80 chickens = 308 * 60/100 = 184.8
S.P of 80 chickens= 184.8 + 308 = 492.8
S.P of 1 chicken = 492.8/80 = 6.16