A bakery has a markup of 250% on the cost of their bread. They sell each loaf for $2.80. (i) Calculate the cost of each loaf. (ii) Calculate the amount of markup on each loaf.

To solve the problem, let's first define the key information:

- The selling price of each loaf is $2.80.
- The markup is 250%.

### (i) Calculate the cost of each loaf.

We know the bakery applies a 250% markup on the **cost** price. The selling price ($2.80) includes both the cost and the markup.

Let the cost price of each loaf be denoted as $ C $. Since the markup is 250%, the selling price is the cost plus 250% of the cost:

\[
\text{Selling Price} = C + 2.5C = 3.5C
\]

Given that the selling price is $2.80, we can now set up the equation:

\[
3.5C = 2.80
\]

Solving for $ C $:

\[
C = \frac{2.80}{3.5} = 0.80
\]

So, the cost of each loaf is **$0.80**.

### (ii) Calculate the amount of markup on each loaf.

The markup is the difference between the selling price and the cost price. From part (i), we know the cost price is $0.80, and the selling price is $2.80. Thus, the markup is:

\[
\text{Markup} = \text{Selling Price} - \text{Cost Price} = 2.80 - 0.80 = 2.00
\]

So, the markup on each loaf is **$2.00**.

### Summary:
1. **Cost of each loaf**: $0.80
2. **Amount of markup**: $2.00

Would you like further clarification on this, or do you have any questions?

Here are 5 related questions for deeper understanding:
1. What would the cost be if the markup percentage changed to 300%?
2. How would the selling price change if the cost of a loaf increased to $1.00?
3. If the bakery wanted a lower markup of 150%, what would the new selling price be?
4. How does markup percentage affect profit margins?
5. What is the breakeven selling price with a 0% markup?

**Tip:** Always express the markup as a percentage of the cost price, not the selling price!

A bakery has a markup of 250% on the cost of their bread. They sell each loaf for $2.80. (i) Calculate the cost of each loaf. (ii) Calculate the amount of markup on each loaf.

Learn how to calculate the cost and markup of a loaf of bread sold at $2.80 with a 250% markup. Understand the use of algebra and percentage formulas to break down the price structure. Suitable for students in Grades 7-9.

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