Question

alana is the owner of great cookie. she spent $100 on the eggs, $50 on the flour, $45 on milk, $10 on utilities, and $60 on wages to produce 200 cookies. She sells her cookies for $1.50 each. Calculate the value added per cookie?

Answer 1

Answer:

The value added per cookie is $0.175.

Explanation:

In order to obtain the value added per cookie, we have first to calculate how much did she spend for producing each cookie. She spent a total of $265 on the cookies production ($100+50+45+10+60$). So, if she obtained a total of 200 cookies, the cost per cookie is equal to $1.325 ($265:200$). Finally, the value added per cookie is $1.5-1.325=0.175$.