A fast-food restaurant features only three entree items on its menu with the following cost and selling

Question:

A fast-food restaurant features only three entree items on its menu with the following cost and selling prices: image text in transcribed

a. For each item calculate the food cost percentage.

b. If 50 of each item are sold each day, what will the standard food cost percentage be? What is the contribution margin in dollars?

c. If only 25 each of Items 1 and 3 sold and 100 of Item 2, what effect will this have on the standard cost percentage? What is the contribution margin in dollars?

d. Comment on the results of this analysis.LO1

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Hospitality Management Accounting

ISBN: 9780471687894

9th Edition

Authors: Martin G Jagels, Catherine E Ralston

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Question Posted: Jun 21, 2024 09:00 AM

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A fast-food restaurant features only three entree items on its menu with the following cost and selling

Question:

Item Cost Selling Price 123 $2.20 $6.80 2 3.25 8.80 3 3.75 9.85

Step by Step Answer:

Hospitality Management Accounting

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