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Activity 3: Cost menus for profitability Additional Scenario Desired profit margins and mark-up procedures: The following information was furnished in the scenario under menu options

Activity 3: Cost menus for profitability Additional Scenario Desired profit margins and mark-up procedures: The following information was furnished in the scenario under menu options Prices for dishes should range from: $12 to $18 for entres, $22 to $35 for a main course and $10 to $15 for desserts. The restaurant has found that customers resist dishes outside these price ranges unless they can see value for money or the dish is rare or unique. Based on a 25% organisational food cost, price menu items to ensure maximum profitability. Formulas: Food Cost % = (Cost per Portion / Sale price) *100 or Sale Price = (Cost per Portion/ Food Cost %) *100

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