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QuestionFind the selling price for a \$20.80 wine to achieve a 40% cost. Options: \$52.00, \$40.00, \$37.50, \$45.00.

Studdy Solution

STEP 1

Assumptions1. The cost of the bottle of Cakebread Cellars Sauvignon Blanc is $20.80. The desired cost percent for the bottle is40%
3. The cost percent is calculated as the cost of the bottle divided by the selling price4. We want to find the minimum selling price that would achieve a40% beverage cost percent

STEP 2

First, we need to set up the equation for the cost percent. The cost percent is calculated as the cost of the bottle divided by the selling price.
Cost percent=Cost of bottleelling priceCost\, percent = \frac{Cost\, of\, bottle}{elling\, price}

STEP 3

We know the cost percent and the cost of the bottle, and we want to find the selling price. So, we can rearrange the equation to solve for the selling price.
elling price=Cost of bottleCost percentelling\, price = \frac{Cost\, of\, bottle}{Cost\, percent}

STEP 4

Now, plug in the given values for the cost of the bottle and the cost percent to calculate the selling price.
elling price=$20.8040%elling\, price = \frac{\$20.80}{40\%}

STEP 5

Convert the percentage to a decimal value.
40%=0.440\% =0.4elling price=$20.800.4elling\, price = \frac{\$20.80}{0.4}

STEP 6

Calculate the selling price.
elling price=$20.800.4=$52.00elling\, price = \frac{\$20.80}{0.4} = \$52.00The preliminary selling price for the bottle of Cakebread Cellars Sauvignon Blanc should be $52.00 to achieve a40% beverage cost percent.

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