Kevin and Sarah’s friend Ally wants in on the entrepreneurial action and decides to sell her world famous Mega-Death Choco Cookies at fairs and church carnivals. She has learned the following...

Kevin and Sarah’s friend Ally wants in on the entrepreneurial action and decides to sell her world famous Mega-Death Choco Cookies at fairs and church carnivals. She has learned the following calculations for gross margins:

Gross margin (as a percent) = (Selling price – costs) / Selling price

Gross profit in dollars = selling price – costs

At the county fair she had the following results:

Price for a dozen cookies = $12
Costs for ingredients = $3
Booth and table cloth = $150
Other fixed expenses = $200

In two days, she sold 214 dozen cookies (these are really good cookies)

What is Ally’s gross margin for a dozen cookies?

Question 15 options:

1)

70%

2)

68%

3)

75%

4)

50%

5)

She needs more information to know