The Mills Lunch Shop prepares fresh take-out entrees each day. On Tuesday, 40 baked chicken dinners were prepared at a cost of $3.20 each. A 20% spoilage rate is anticipated. Mills Lunch Shop sells the dinners at an 80% markup based on cost. They decided to offer a $1.00-off coupon in a newspaper advertisement. What markdown percentage does this coupon represent? (Round to the nearest tenth of a percent.)

Question

anonymous · Answer

Cost Price of 40 chickens = 40 * 3.2 = 128

Effective Cost Price = spoilage + 128 = 20% of 128 + 128 = 1.20*128 = 153.6

Profit = 80%

Profit of 40 chickens = 153.6* 80/100 = 122.8

S.P of 40 chickens= 122.8 + 153.6 = 276.48

S.P of 1 chicken = 276.48/40 = 6.912

markdown amount = $1

markdown percentage = (markdown amount/SP)*100

markdown percentage = (1/6.912)*100

markdown percentage = 14.5%

anonymous · Answer

thank you i got the same answer but my comp isn't agreeing with it i don't understand there are two that ive done a few times and then asked others got the same answers and the thing says wrong i guess i have to contact my instructor again thank you