Solution:
Arley’s Bakery makes fat-free cookies that cost $1.50 each
Arley expects 15% of the cookies to fall apart and be discarded
Total cookies = 200
Discarded = 15 % of 200
[tex]Discarded = \frac{15}{100} \times 200 = 30[/tex]
Now, remaining = 200 - 30 = 170
Good cookies = 170
Arley wants a 45% markup on cost
Total cost = 200 cookies x 1.50 = 300
45 % markup
Therefore,
cost = 300 + 45 % of 300
[tex]cost = 300 + \frac{45}{100} \times 300[/tex]
cost = 300 + 135 = 435
What should Arley price each cookie?
[tex]Price\ per\ cookie = \frac{435}{170} = 2.56[/tex]
Thus Arley should price each cookie $ 2.56
