The Flour Power Bakery makes 200 cherry cheesecakes at a cost of $2.45 each. If a spoilage rate of 5% is anticipated, at what price should the cakes be sold to achieve a 40% markup based on cost?

wrong

To determine the selling price of the cherry cheesecakes, we will first calculate the total cost of making 200 cheesecakes and then apply the desired markup percentage.

Step 1: Calculate the total cost of making 200 cheesecakes.
Total Cost = Number of cheesecakes * Cost per cheesecake
Total Cost = 200 * $2.45 = $490

Step 2: Determine the markup amount.
Markup amount = Desired markup percentage * Total cost
Markup amount = 40% * $490 = $196

Step 3: Determine the selling price per cheesecake.
Selling Price per cheesecake = Total cost + Markup amount
Selling Price per cheesecake = $490 + $196 = $686

Step 4: Adjust the selling price to account for spoilage.
Spoilage rate = 5%
Selling Price per cheesecake = Selling Price per cheesecake / (1 - Spoilage rate)
Selling Price per cheesecake = $686 / (1 - 0.05) = $686 / 0.95 ≈ $721.05

Therefore, the cherry cheesecakes should be sold at a price of approximately $721.05 each to achieve a 40% markup based on cost.

To determine the selling price of the cherry cheesecakes, we need to follow these steps:

Step 1: Calculate the total cost of producing the cheesecakes
The Flour Power Bakery makes 200 cheesecakes at a cost of $2.45 each. So the total cost of producing the cheesecakes is:
Total Cost = Number of Cheesecakes * Cost per Cheesecake
Total Cost = 200 * $2.45 = $490

Step 2: Calculate the desired markup amount
The question states that a 40% markup based on cost is desired. To calculate the markup amount, we can use the formula:
Markup Amount = Desired Markup Percentage * Cost
Markup Amount = 40% * $490 = $196

Step 3: Calculate the desired selling price
The desired selling price can be calculated by adding the markup amount to the total cost:
Selling Price = Total Cost + Markup Amount
Selling Price = $490 + $196 = $686

Step 4: Adjust for anticipated spoilage rate
Since a spoilage rate of 5% is anticipated, we need to adjust the selling price to account for that. We can do this by dividing the desired selling price by (1 - spoilage rate).
Adjusted Selling Price = Selling Price / (1 - Spoilage Rate)
Adjusted Selling Price = $686 / (1 - 0.05) = $686 / 0.95 = $722.11 (rounded to the nearest cent)

Therefore, the cherry cheesecakes should be sold at a price of approximately $722.11 to achieve a 40% markup based on the cost.

since 5% are spoiled she will have only 95% of 200 or 190 pies to sell.

cost = 2.45(200) = $490

so her return must be 490(1.4) or $686 to make a 40% profit

selling price per pie = 686/190 = $3.61