Delicia is a newly opened restaurant. Its menu highlights a single item- a taco meal. The owner of the restaurant is trying to determine the appropriate price for this product following cost pricing. The breakdown of Delicia's operating cost is provided below. Three employees work at the restaurant: chef @ $20/hr; two service workers @ $12.5/hr Occupancy costs: rent ($2,500/month); advertising ($500/ month) Food costs: utility for making food ($1/unit); raw material for making food ($2/unit) Assume there are no other costs, the restaurant sells only one product, and there are 30 days in a month. The restaurant operates from 11am to 9pm every day. Q1: Determine the profit when Delicia sells 66 (55 with 20% increase) meals at the price of $18. Q2. Explain why a 20% increase in sales volume results in an increase in profit greater than 20%. Q3. What is mark-up pricing? What is the main reason to use this tactic? Q4. What is odd pricing? What is the rationale of this pricing tactic? Q5. What is prestige pricing? What is the primary reason to use this tactic? Q6. What is price fixing? How is it different from deceptive pricing? Q7. How to carry out a predatory pricing strategy? Describe.

Delicia is a newly opened restaurant. Its menu highlights a single item - a taco meal. The owner of the restaurant is trying to determine the appropriate price for this product following cost pricing. The breakdown of Delicia's operating cost is provided below. Three employees work at the restaurant: chef @ \$20/hr; two service workers@ @ $12.5/hr Occupancy costs: rent ( $2,500/ month); advertising ( $500 / month) Food costs: utility for making food (\$1/unit); raw material for making food (\$2/unit) Assume there are no other costs, the restaurant sells only one product, and there are 30 days in a month. The restaurant operates from 11 am to 9pm every day. Q1: Determine the profit when Delicia sells 66 ( 55 with 20% increase) meals at the price of $18. Q2. Explain why a 20% increase in sales volume results in an increase in profit greater than 20%. Q3. What is mark-up pricing? What is the main reason to use this tactic? Q4. What is odd pricing? What is the rationale of this pricing tactic? Q5. What is prestige pricing? What is the primary reason to use this tactic? Q6. What is price fixing? How is it different from deceptive pricing? Q7. How to carry out a predatory pricing strategy? Describe