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Just Desserts buys cheesecakes from General Bakeries at $26.80 per cheesecake. It then cuts each cheesecake into 16 slices and sells them to customers at $5.90 per slice. Calculate the rate of markup on cost and the rate of markup on selling price. (Do not round intermediate calculations and round your final answers to 1 decimal place.)

Question

Just Desserts buys cheesecakes from General Bakeries at 26.80percheesecake.Itthencutseachcheesecakeinto16slicesandsellsthemtocustomersat26.80 per cheesecake. It then cuts each cheesecake into 16 slices and sells them to customers at 5.90 per slice. Calculate the rate of markup on cost and the rate of markup on selling price. (Do not round intermediate calculations and round your final answers to 1 decimal place.)

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Solution

Sure, let's break this down:

Step 1: Calculate the total selling price of the cheesecake Since Just Desserts sells each slice at 5.90andthereare16slicesinacheesecake,thetotalsellingpricewouldbe5.90 and there are 16 slices in a cheesecake, the total selling price would be 5.90 * 16 = $94.40.

Step 2: Calculate the markup The markup is the difference between the selling price and the cost price. So, the markup would be 94.40(sellingprice)94.40 (selling price) - 26.80 (cost price) = $67.60.

Step 3: Calculate the rate of markup on cost The rate of markup on cost is the markup divided by the cost price. So, the rate of markup on cost would be 67.60(markup)/67.60 (markup) / 26.80 (cost price) * 100 = 252.2%.

Step 4: Calculate the rate of markup on selling price The rate of markup on selling price is the markup divided by the selling price. So, the rate of markup on selling price would be 67.60(markup)/67.60 (markup) / 94.40 (selling price) * 100 = 71.6%.

So, the rate of markup on cost is 252.2% and the rate of markup on selling price is 71.6%.

This problem has been solved

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