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

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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 one and three were sold and 100 of item two, 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.

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Hospitality Management Accounting

ISBN: 9780471092223

8th Edition

Authors: Martin G Jagels, Michael M Coltman

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Question Posted: Jun 28, 2024 01:12 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 $2.00 $6.60 2 4.40 8.80 3.90 9.75

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Hospitality Management Accounting

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