1. Julian Lemon is the owner of The Vin Avec Des Amis (VADA) Wine Banjulian sells bottled wine and wine by-the-glass. For his wine by-the-glass sales, he has established the following product cost targets based upon his actual purchase cost for the wines. Wine Goat Target Cost 7. $6.00 or more per bottle 18% Less than $6.00 per bottle 15% Julian utilizes 750-ml bottles for his bytheglass wine program. Each bottle yields five servings. After making the calculations needed to achieve his target cost percentages, julian always rounds up to the nearest 25 cent level to create his actual suggested (rounded) menu price because that way his menu prices always end in 0.00. 0.25, 0.50, or 0.75. julian is now creating menu prices for four new lowercost wines. Complete his wine bytheglass costing and pricing worksheet. Then answer the questions that follow: Suggested Isa-ml Glasses Calculated (Rounded) Bottle per Cost per Target Selling Menu Actual Product Cost (5) Bottle Glass (5) Cost '5 Price (8) Price (3) Cost 'il. Old Oak Chardonnay 7.60 5 i 13% Pe'fj'?' Pin\" 5.45 5 ' 18% Gngio Name Shiraz 5.35 5 | 13% California 510 5 ' 15% Coast Zinfandel a. \"that should he the suggested (rounded) menu price for the Old Oak Chardonnay? b. What should be the suggested (rounded) menu price for the Name Shiraz? c. Assuming no product waste. what should be the actual wine cost percentage for the Periot Pinot Grigio if the operation charges the suggested (rounded) selling price? d. Assuming no product waste, what should be the actual wine cost percentage for the California Coast Zinfandel if the operation charges the suggested (rounded) selling price? 2. Rosa and Gabriel own two Mexican grills in a large city in Texas. Rosa has primary responsibility for the grill in the suburbs, and Gabriel has primary responsibility for the grill in the downtown area. The menu items and product costs are the same in both grills, but the market in the downtown area demands lower menu prices than that in the suburbs. So, Rosa has set her desired product cost percentage at 28%, and Gabriel's desired product cost percentage is 329% since he can't charge as much as Rosa. Rosa likes to use the product cost percentage method to price her menu items, and Gabriel likes to use the factor method. Help both of them determine their pre-rounding selling prices. Rosa and Gabriel's Mexican Grill (Suburb-Rosa) Desired Product Cost Percentage 28% Product Cost Percentage Pricing Method Iten Cost of Product ($) Desired Product Cost Percentage Pre-rounding Selling Price Steak Fajitas 4.50 Chicken Fajitas 4.00 Carne Asada 4.25 Test Your Skills 289 Item Cost of Product ($) Desired Product Cost Percentage Pre-rounding Selling Price Cheese Enchiladas 2.00 Beef Enchiladas 2.50 Enchiladas Verde 2.00 Chili Rellenos 2.75 Tacos 0.30 Bean Chalupas 0.25 Tortilla Soup 0.30 Rosa and Gabriel's Mexican Grill (Downtown-Gabriel) Desired Product Cost Percentage 32% Factor Method Item Cost of Product ($) Factor Pre-rounding Selling Price Steak Fajitas 4.50 Chicken Fajitas 4.00 Carne Asada 4.25 Cheese Enchiladas 2.00 Beef Enchiladas 2.50 Enchiladas Verde 2.00 Chili Rellenos 2.75 Tacos 0.30 Bean Chalupas 0.25 Tortilla Soup 0.303. Law;' Barger is the FScB Director at the Golden Rose Reception Hall. Larry's operation is a favorite local choice for wedding receptions and other special banquet events. Larryr sells the following three different popular dinner pack- ages at varying price points to appeal to a range of guests. Yellow Rose Package White Rose Package $39.95 Golden Rose Package $49.95 Larry wants to know his food cost percentage on each package he offers. Help him complete the work sheets he has prepared and then answer the questions that follow. The Golden Rose Packages I Yellow Rose Package While Race Package Golden Race Package I Hem 0031 (S) Hem Gal (5) Item Gael (S) AEpelizaer Minestrone ' 1.25 Onion Soup 1.70 Crab Cake 2.25 Entree Roast Chicken _ 2.25 _ Braised Beef Ribs 4.25 _ Filet Mignon 6.50 Side Yellow Rice 025 Roasted Redskins 0.65 Duchesse Potatoes 0.75 (command) 290 Chapter 7 Food and Beverage Pricing \"I. GOICOI'I Rose MOW (Continued) Yellow Rose Package While Rose Package Golden Rose Package Item I can (3) Item Cost (3) Item 0081 (:3 Side Steamed ' 0.50 Bacon Green 0.75 Barnaise 0.95 Broccoli Beans Asparagus Bread Dinner Rolls I 1.00 Basil Loaf 1.25 French Loaf 1.55 Dealert White Cake I 0.75 Almond Torte 1.25 Poached Pears 1.35 Beverage Coffee/ Tea 125 Coffee/ Tea 1.25 Co'ee/Tea/ 4.40 House Wine 'Ihtal Cost Total Cost Total Cost Food Cost 96 Food Cost 96 Food Cost 96 a. What would be Larry's food cost percentage if 100% of his guests chose the Yellow Rose Package? 1:. What would be Larry's food cost percentage if 100% of his guests chose the White Rose Package? c. What would he Larry's food cost percentage if 100% of his guests chose the Golden Rose Package? d. What would be Larry's total food cost percentage if one third of his guests chose each of the three di'crent packages he offers? 4. Larry Barger is the F&B director at the Golden Rose Reception Hall. Larry's friend Lydia operates a similar banquet facility in another town and she tells him that she prices her banquet meals by using a contribution margin approach. On her lowest-cost packages, she prices for a contribution margin of $10.00 per guest served; on her mid-price pack- ages, a contribution margin of $20.00 per guest served; and on her highest-price package, a contribution margin of $30.00 per guest served. Larry wants to calculate the contribution margin on each of the following packages he offers. Yellow Rose Package $29.95 White Rose Package $39.95 Golden Rose Package $49.95 Help him complete the work sheets he has prepared and then answer the questions that follow. The Golden Rose Packages Yellow Rose Package White Rose Package Golden Rose Package Item Cost ($) Item Cost ($) Item Cost ($) Appetizer Minestrone 1.25 Onion Soup 1.70 Crab Cake 2.25 Entree Roast Chicken 2.25 Braised Beef Ribs 4.25 Filet Mignon 6.50 Side Yellow Rice 0.25 Roasted Redskins 0.65 Duchesse Potatoes 0.75 Side Steamed 0.50 Bacon Green 0.75 Bearnaise 0.95 Broccoli Beans Asparagus Bread Dinner Rolls 1.00 Basil Loaf 1.25 French Loaf 1.55 Dessert White Cake 0.75 Almond Torte 1.25 Poached Pears 1.85 Beverage Coffee/Tea 1.25 Coffee/Tea 1.25 Coffee/Tea/ 4.40 House Wine Total Cost Total Cost Total Cost Contribution Contribution atribution Margin Margin Margin Test Your Skills 291 a. What would be Larry's per guest contribution margin if 100% of his guests chose the Yellow Rose Package? b. What would be Larry's per guest contribution margin if 100% of his guests chose the White Rose Package? c. What would be Larry's per guest contribution margin if 100% of his guests chose the Golden Rose Package? d. What would be Larry's overall per guest contribution margin if one-third of his guests chose each of the three different packages he offers