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2. Tavern aims to redesign its menu. You are asked to help with the menu engineering. Menu items Price Cost Contribution Menu Mix % 3.2%
2. Tavern aims to redesign its menu. You are asked to help with the menu engineering. Menu items Price Cost Contribution Menu Mix % 3.2% $1.30 Number Sold 50 40 150 $3.95 $3.75 $3.95 $2.65 $1.00 $2.75 2.6% 9.6% $2.55 $1.40 $0.85 $3.45 300 $2.60 19.2% $4.95 $1.25 190 $3.70 12.1% Pork Barrel Lamb Leg Chicken Breast Burger Delight Super Burger Roast Beef Ocean Catch Tuna Salad Egg Salad Cheese Mix $4.95 $1.50 250 $3.45 16.0% $4.45 $3.25 12.8% $1.20 $0.60 $0.35 200 175 $3.50 $3.25 $2.95 $2.90 $2.90 11.2% 9.6% 150 $0.40 60 $2.55 3.8% The total number sold: 1565 100.0% A. Calculate the average contribution margin for all the menu items; (Hint: Average contribution margin = Total contribution margin = Total Number Sold) B. Calculate average popularity index; (Hint: Average popularity index = 1 + Number of the menu items) C. Categorize the menu items into Star, Plow Horse, Puzzle, and Dog by showing each item's popularity and profitability; (Hint: Use the average contribution margin and average popularity index as the cut-off points) D. Share your suggestion on how SHTM Tavern should manage the Plow Horse items
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