1. For a new restaurant food revenues are forecasted to be 2,000,000 per year with a total customer count of a 150,000. Furthermore, total costs of food sold are expected to be 40%, and the standard food cost for one item on the menu was calculated to be $4.00. The menu items price by using the Gross Profit approach should be:

2. When the desired food cost percentage is 40%, the multiple used for determining prices using the ingredient mark-up approach is:

3. When the desired food cost percentage is 30%, and the food cost for a menu item is $5.00 the price using the mark-up approach is:

4. Assume we have a 100-room hotel with its original ADR at $50 and rooms sold per week at 560 rooms (Week 1). The next week (Week 2) the hotel raised the ADR to $55 and sold 550 rooms. The hotel has a rack rate of $80. Requirements: a. What is the price elasticity, E, of the demand measured in terms of rooms sold and what is the type of the demand? b. What are the total room revenues in Weeks 1& 2, respectively? What are the yields in Weeks 1 & 2, respectively?