Sunfresh Bakery makes Italian bread that costs $1.34 per loaf. Past experience shows that 8 percent of the loaves will spoil and have to be discarded. Assuming Sunfresh wants a 45 percent markup based on cost and produces 250 loaves, what should each loaf of bread sell for?

Question

Sunfresh Bakery makes Italian bread that costs​ $1.34 per loaf. Past experience shows that 8 percent of the loaves will spoil and have to be discarded. Assuming Sunfresh wants a 45 percent markup based on cost and produces 250​ loaves, what should each loaf of bread sell​ for?

Vocaloid · Answer

8% of the loaves go bad

so only 92% of 250 loaves can be sold

the cost to make each loaf is 1.34 and they want a 45% markup
(250)(1.34)(1.45) gives the total amount of money they want to make

divide this by (0.92)(250) to find the price per sell-able loaf
round up to the nearest hundredths place