2. If the percentage sales by meal period are 20 percent, 30 percent, and 50 breakfast, lunch, and dinner, respectively, what is the average check for each Bruno, seeks your advice on pricing. Although he knows he will have to modify you A proposed budget inn, Bruno's, is scheduled to open in two months. The owner, 1990 Other 5% Depreciation Salaries 160,000 Utilities 26,000 Other 25,000 Required: 1. Determine the average check. per Problem 8 recommendations based on market prices, he desires a cost perspective. He gives you the are based in part, on the price elasticity of demand for their menu items. During the thirty- ay periods before and after the last menu revision, the selling prices and quantity sold of Cost Approaches to Pricing 429 following information: Lou's investment Lou's desired ROI Lou's marginal tax rate Funds borrowed Interest rate Forecasted annual costs: Management fees = $2,000,000 = 20 percent = 30 percent = $3,000,000 = 12 percent annual Depreciation, property taxes, and insurance = $600,000 = 5 percent of room sales Rooms department expenses = 25 percent of room sales Undistributed operating expenses = $200,000 + 5 percent of room sales Assume: Non-room profit centers generate $10,000 of annual department profit. Assume the Bruno has 150 guestrooms, and it expects to have paid occupancy of 70 percent. . Required: 1. Determine the required ADR. 2. Assume the Bruno has both single and double rooms. Further assume that 80 percent of rooms sold are doubles and that doubles sell for $20 more than the price of a single. What is the average selling price of a double? Problem 9 The Squish, an upscale 150-seat restaurant, revises its menu every six months. The revisions inn