Cost of producing 60 cupcakes = 60 cupcakes * $0.95 each cupcake i.e. $57
Desired Markup on Cost = 35% of total cost
= 35% of $57
= $19.95
Desired Sales Revenue = Total Cost of producing 60 cupcakes + Desired Markup
= $57 + $19.95
= $76.95
Number of Cupcakes to be sold = Cup Cakes produced * (1 - Expected Spoilage)
= 60 cupcakes * (1 - 0.20)
= 48 cupcakes
Charges for Each Cupcake = Desired Sales Revenue / Number of Cupcakes to be sold
= $76.95 / 48 cupcakes
= $1.603125 or $1.60 for each cupcake
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