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Below, you are given the specific product, labor and operating cost information you need to calculate the menu price for a menu item using each
Below, you are given the specific product, labor and operating cost information you need to calculate the menu price for a menu item using each of the following pricing methods. Find the final selling price (and put it in typical dollar/cents format $00.00) for each.
Food Cost Percentage Pricing Method
- Food cost is $5.00.
- Desired food cost percentage is 35%.
Answer:
Contribution Margin Pricing Method
- Nonfood cost is $500,000.
- Profit is $65,000.
- Number of customers is 90,000.
- Food cost is $10.00.
Answer:
Prime Cost Pricing Method
Tip: Round up ratio first and then do multiplication
- Labor cost is $2.00.
- Food cost is $3.00.
- Target labor percentage is 15%.
- Target food cost percentage is 20%.
Answer:
Ratio Pricing Method
- Nonfood cost is $500,000.
- Profit is $90,000.
- Food cost is $300,000
- Food cost is $5.00 (per dish).
Answer:
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