Question

Jenny is starting a bakery and needs some help with pricing the muffins. Since she knows you have studied pricing, please help her to determine the following.

The muffins cost $0.35 to produce. She would like to sell them for $1.20. What is the mark-up percentage of selling price?

She also wants to see what the price would be if she marked up the product 90%.

She also needs to find her breakeven in units…in other words how many muffins must she sell to breakeven. Fixed Cost $5,000.00 with a per-unit contribution to fixed cost of $1.20.