Joe sells cookies for 20% more than it costs to make them. If he sold 50 cookies and earned $60, how much do the cookies cost to make? Think carefully first, then make a decision:
He sold the cookies for $1.20 each because 60 / 50 = 1.2. They cost $1 to make because 1.2 / 1.2 = 1. So, the answer is 1.