Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

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

Sagot :

Kolawole845

Answer:

The price of a Dinner= $6.22

Explanation:

Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.

To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:

Dinner cost = 100/(100-10)× 3.50= 3.89

The price of a Dinner = product cost + 60% of product cost

The price of a Dinner = 3.89 + 60%*3.89= $6.22

The price of a Dinner= $6.22

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.