Arley’s Bakery makes fat-free cookies that cost $1.20 each. Arley expects 25% of the cookies to fall apart and be discarded. Arley wants a 50% markup on cost and produces 180 cookies. What should Arley price each cookie? (Round your answer to the nearest cent.)

$2.4 should be the price

Explanation:

Cost of one cookie $1.2

Production (numbers) = 180

Cost of 200 ($1.20 multiply with  180) = 216

Markup required ($216 multiply with 50%) = 108

Total Price required (216 plus 108) = 324

Actual production = 135

Price per cookie(324 divided by 135) = $2.4

Note : For finding out the cost of 200 production numbers, it is to be multiplied with the cost of one cookie. Markup is required by 50% and total price is calculated by adding the cost of 200 production cookies with markup cost.

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