Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started