A local Dunkin' Donuts makes blueberry muffins that cost $.69 each. Past experience shows that 15% of the muffins will spoil and have to be discarded. Assuming that this shop wants a 30% markup based on cost and produces 200 muffins, each muffin should sell for:
A)$0.90
B)$0.91
C)$1.50
D)$1.06
E)None of these

Question

Quizplus · Accepted Answer

To calculate the selling price, first determine the effective cost per muffin considering spoilage: $0.69 / (1 - 0.15) = $0.81. Then, apply the 30% markup: $0.81 * 1.30 = $1.053, which rounds to $1.06.

A Local Dunkin' Donuts Makes Blueberry Muffins That Cost