Fresh Market prepares gourmet dinners each day. On Wednesday, 80 baked chicken dinners were made at a cost of \( \$ 3.50 \) each. A \( 10 \% \) spoilage rate in anticipated. At what selling price should the dinners be sold to acheive a \( 60 \% \) markup based on selling price? Select one: a. \( \$ 280.00 \) b. \( \$ 8.75 \) c. \( \$ 7.88 \) d. \( \$ 9.72 \)

To determine the appropriate selling price for the gourmet dinners, follow these steps: 1. **Calculate Total Cost:** - **Number of Dinners Made:** 80 - **Cost per Dinner:** \$3.50 - **Total Cost:** \( 80 \times \$3.50 = \$280 \) 2. **Account for Spoilage:** - **Spoilage Rate:** 10% - **Dinners Sold:** \( 80 \times (1 - 0.10) = 72 \) 3. **Determine Selling Price with Desired Markup:** - **Desired Markup:** 60% based on selling price - Let \( p \) be the selling price per dinner. - **Total Revenue:** \( 72p \) - **Markup Formula:** \(\frac{\text{Revenue} - \text{Cost}}{\text{Revenue}} = 0.60\) - **Set Up the Equation:** \[ \frac{72p - 280}{72p} = 0.60 \] - **Solve for \( p \):** \[ 72p - 280 = 0.60 \times 72p \\ 72p - 0.60 \times 72p = 280 \\ 0.40 \times 72p = 280 \\ 28.8p = 280 \\ p = \frac{280}{28.8} \approx 9.72 \] 4. **Conclusion:** - The dinners should be sold at **\$9.72** each to achieve a 60% markup based on the selling price. **Answer:** **d. \( \$ 9.72 \)**