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A local Dunkin donuts makes blueberry muffins that cost $.69 each to make. Past experience shows that 15% of the muffins will spoil and have to be discarded. Assuming this donut shop wants a 30% markup based on cost and produces 200 muffins, each muffin should sell for:

Answer: $1.06 What is the formula? How to solve this?

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Liz
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  1. cost to make the 200 muffins = 200(.69) =$ 138

    so profit with 30% markup = 1.3(138) = $179.4

    but they can only sell 85% of the muffins or
    .85(200) = 170

    so selling price of each of the 170 muffins
    = 179.4/170 = 1.055

    They should sell each muffin at $1.06

    I really did not use a "formula" since there was no variable defined .

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    Reiny

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