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:
A)$2.28
B)$2.54
C)$2.45
D)$2.82
E)None of these

Question

Quizplus · Accepted Answer

To calculate the selling price with a 45% markup based on cost, first adjust for spoilage: 300 croissants x 90% = 270 sellable croissants. Total cost = 300 x $1.75 = $525. Cost per sellable croissant = $525 / 270 = $1.9444. Selling price = $1.9444 x 1.45 = $2.82.

Belle's Bake Shop Makes Croissants That Cost $1