lose means cost each is increased.
cost each after losses: 1.10(1.15)=1.27 each
with 35 precent markup,then the price should be 1.25*1.35=1.69 each
cost each after losses: 1.10(1.15)=1.27 each
with 35 precent markup,then the price should be 1.25*1.35=1.69 each
Step 1: Calculate the cost to make each praline.
Given that each praline costs $1.10 to make, this is the cost price.
Step 2: Calculate the total cost of producing 45 pralines.
To do this, multiply the cost to make each praline by the number of pralines produced (45):
Total cost = $1.10/praline * 45 pralines
Step 3: Determine the total cost after accounting for anticipated spoilage.
If there is an anticipated 15% spoilage, we need to subtract this from the total cost:
Total cost after spoilage = Total cost * (100% - 15%)
Step 4: Calculate the desired markup based on selling price.
To markup the selling price by 35% based on selling price, we need to divide the total cost by (1 - markup percentage):
Selling price = Total cost after spoilage / (1 - markup percentage)
Step 5: Calculate the selling price per praline.
Finally, divide the selling price by the number of pralines to determine the selling price per praline:
Selling price per praline = Selling price / 45
Let's calculate this step-by-step:
Step 1: Cost to make each praline = $1.10
Step 2: Total cost = $1.10/praline * 45 pralines = $49.50
Step 3: Total cost after spoilage = $49.50 * (100% - 15%) = $41.93
Step 4: Selling price = $41.93 / (1 - 35%) = $64.50
Step 5: Selling price per praline = $64.50 / 45 pralines = $1.43 (rounded to two decimal places)
Therefore, each praline should be sold for approximately $1.43.
1. Calculate the cost of making each praline:
Aunt Sally’s pralines cost $1.10 each to make.
2. Determine the selling price per praline considering the desired markup:
Aunt Sally’s wants a 35% markup based on the selling price. This means the selling price will be 135% of the cost price.
Markup = 135% = 1 + 35% = 1.35
3. Take into account the anticipated spoilage rate:
Aunt Sally’s anticipates a 15% spoilage rate. This means we need to increase the selling price to cover the cost of pralines that will not be sold.
Final Selling Price = Selling Price per praline / (1 - Spoilage Rate)
Now let's calculate the selling price per praline:
Cost of making each praline = $1.10
Markup = 1.35 (35% markup = 1 + 35% = 1.35)
Spoilage Rate = 15% = 0.15
Final Selling Price = $1.10 / (1 - 0.15)
Final Selling Price = $1.10 / 0.85
Final Selling Price = $1.29 (rounded to the nearest cent)
Therefore, each praline should be sold for $1.29 to cover the production cost, desired markup, and anticipated spoilage rate.