SkyPie is a mom and pop bakery in Detroit. It costs them $2.60 to make a single rhubarb pie. They sell the pies for $4.00. Over the holidays they sold 370 rubarb pies, a 35% increase over the previous year.

The owners would like to increase their target margin to 75% but don’t want to raise the price for their customers. How much do they need to lower the cost of making the pies to reach the target margin?

Answer rating: 100% (QA)

To calculate the current profit margin for each rhubarb pie we first need to calculate the profit pe... View the full answer