Question

If a concession owner pays $0.50 per pretzel, and it costs the owner $1.00 to have the pretzel prepared and served, what should the owner charge per pretzel if he wants cost to be 60% of the price?

Answer 1

The owner should charge an amount of $2.50 per pretzel, if the cost price of 60% is desired.

What is cost price?

The cost borne by a producer to manufacture or produce such goods and sell them at a higher price is known as the cost price. In this case, the cost price if $1.50 per pretzel.

If such cost price is desired to be 60% of the selling price, then the selling price will be,

$\rm Sell\ Price= \dfrac{Cost\ Price}{Desired\ Percentage}\ x\ 100\\\\\rm Sell\ Price= \dfrac{1.50}{60}\ x\ 100\\\\\rm Sell\ Price= \ 2.5$

Hence, the selling price should be $2.5 if the desired cost price is 60% of the same.

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