Arley's Baker makes fat-free cookies that cost $1.50 each. Arley expects 15% of the cookies to fall apart and be discarded. Arley wants a 45% markup on the cost and produces 200 cookies. How do you find out what Arley should price each cookie?
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Arley's Baker makes fat-free cookies that cost $1.50 each. Arley expects 15% of the cookies to fall apart and be discarded. Arley wants a 45% markup on the cost and produces 200 cookies. How do you find out what Arley should price each cookie?
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- Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?A store makes 200 cherry cheesecakes at a cost of $2.35 each. If a spoilage rate of 5% is anticipated, at what price should the cakes be sold to achieve a 40% markup based on costYum Yum Bake Shop makes birthday chocolate chip cookies that cost $2.00 each to prepare. It is expected that 8% of the cookies will crack and be discarded. If a 55% markup on cost is required and 100 cookies are produced, what should the bake shop charge for each cookie? (Round your answer to the nearest cent.)
- A local pizza shop owner decides to hire an economic consultant to help him set his prices. Currently, one slice of pizza costs $2 and the store sells about 800 slices per week. The pizza shop's current revenue from sales is equal to $____. The economic consultant estimates that the price elasticity of demand is equal to -0.25, and suggests that the shop owner should increase the price of a slice of pizza by $0.50; that is, the consultant recommends increasing the price of pizza by ____%. The consultant claims that doing so would (a. Increase b. Decrease or C.have no effect on)_____ the number of slices sold by ____% or ____ slices. As a result, the economist predicts that the new revenue would be ____ Thus as a result of the increase in the price there is ____ in revenue. This is due to the fact that the pizza shop owner was operating on the ____ portion of the demand curve. (fill in the blanks)Carondelet Coffee has begun making and selling pastries. The fixed costs of making the pastry are $4,000, and the company estimates that the variable costs are $.75 per pastry. How many pastries does Carondelet have to sell to earn net income of $5,000 if it sells each pastry for $3 apiece?The printing department is considering buying 10,000 additional rolls of gray cloth from an outside supplier at $2,000 per roll, which is much higher than Dover’s cost of weaving the roll. The printing department expects that 10% of the rolls obtained from the outside supplier will result in defective products. Should the printing department buy the gray cloth from the outside supplier? Show your calculations.
- Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to produce the candy is $4,000. The main ingredient for the candy, glucose syrup costs $0.21 per pound. Gooby Gummies sells the taffy for $0.75 per pound to supermarkets. The management of Gooby Gummies is thinking of raising the price of the taffy candy to $0.95 per pound. Currently, the company produces and sells 9,000 pounds of taffy candy a month. The management realizes that if they raise the price, the sales will go down to 5,700 pounds per month. By how much will the company's profit per year be affected if Gooby Gummies' management decide to raise the price? Should the company raise its price? Explain your answer.Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to produce the candy is $4,000. The main ingredient for the candy, glucose syrup costs $0.21 per pound. Gooby Gummies sells the taffy for $0.75 per pound to supermarkets.The management of Gooby Gummies is thinking of raising the price of the taffy candy to $0.95 per pound. Currently, the company produces and sells 9,000 pounds of taffy candy a month. The management realizes that if they raise the price, the sales will go down to 5,700 pounds per month. By how much will the company's profit per year be affected if Gooby Gummies' management decide to raise the price? Should the company raise its price? Explain your answer.Your bakery can produce 3,000 unit of bagel per week for 48 weeks of operation per year. You aim to stay in this business for five years. You can either make the dough for the bagels in house or buy them from a different source. If you make the dough in house, you face with annual labour costs: $30,000, annual safety regulation costs: $5,000 and annual material costs: $20,000. But, if you choose to buy the dough from a different source, you must have a special dough-mixer machine to make adjustment for your production. Therefore, you need to pay $5,000 for the dough mixer machine, which has $1,000 salvage value at the end of 5 years. Furthermore, you face with annual maintaining costs including labour costs: $20,000 and additional overhead costs: $10,000 Using this information, find the unit cost of buy the bagel option with MARR 20%. Question 4 options: a) Between $0.70 and $0.80 b) None of the answers are correct…
- A new notebook in basic color cost $50 each, and Linda combined with her design selling for $100 each, with a personalized design, the price became $125. Each new notebook will cost an extra $10 in materials, and she will need two hours to design, for personalized design she will need an extra 30 minutes. She can pay someone to advertise by $300 each month. She is projecting 200 notebooks sales of which 25% are custom design, each month, and with the marketing, she can increase 10%. How calculate the Statement Income ?The local fruit stand purchases 600 pounds of bananas at $1.49 per pound. They know from experience that 15% of the bananas will have to be discarded. What original full price do they need to out on all the bananas in order to make their markup of 65% on costLila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of forms used in the placing order, and so on. Furthermore, she estimates that the cost of carrying one screw in theinventory for an year is one-half of one cent. Assume that the demand is constant throughout the year. (a)How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? (b)How many orders per year would be placed? What would the annual ordering cost be? (c)What would the average inventory be? What would the annual holding cost be?
