Question
1. Given the following information, what is the base selling price of the menu item using the prime costs pricing method? Menu Item Food Cost
1.Given the following information, what is the base selling price of the menu item using the prime costs pricing method?
Menu Item Food Cost $3.40
Annual Labor Cost $200,000
Annual Number of Expected Guests 60,000
Desired Prime Costs Percentage 63%
2.The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing method?
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
