Question

belle's bake shop makes croissants that cost $1.75 each. past experience shows that 10% of the croissants will spoil and have to be discarded. assuming belle wants a 45% markup based on cost and produces 300 croissants, each croissant should sell for:

Answer 1

Total cost of croissants produced = $1.75 x 300 = $525

Total expected revenue = (100 + 45%)/100 x $525 = 1.45 x 525 = $761.25

Number of croissants expected to spoint = 0.10 x 300 = 30 croissants.

Number of croissants sold = 300 - 30 = 270 croisants.

Unit price of each croissant = $761.25/270 = $2.82

Therefore, each croissant should sell for $2.82

Answer 2

1 croissant = 1.75
300 croissant = 300*1.75  
                        =525 
Selling price= 145/100*525
=761.25

Spoilt ones are 10/100*300
=30
Thus selling price of each= 761.25/270
=2.82 per croissant