A bakery produces 1000 muffins a day. The total direct costs for these are shown.
An oven must be set up for each batch of 50 muffins. The cost for each oven set-up is ＄40. Production overheads are 20% of direct wages.
The bakery requires a profit margin of 25%.
What is the selling price of one muffin?
1 )
＄3.41
2 )
＄4.15
＄4.43
4 )
＄6.03
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