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Lara is the managing owner of the The 1/2 Pound Char-burger kiosk at Metro Airport. Her menu is limited. She sells burgers, fries, and
Lara is the managing owner of the "The 1/2 Pound Char-burger" kiosk at Metro Airport. Her menu is limited. She sells burgers, fries, and drinks. Last week, she served 1,000 customers. Most of her guests order at least a burger and a beverage. Some order a burger, fries, and beverage, while still others order only fries and a beverage. Sales data from last week are presented in the following table. "The Char-burger" 1,000 Customers Served Item # Sold Selling Price Item Cost Item Cont Margin Total Cont. Margin Burger 822 $2.99 $1.45 $1.54 Fries 640 $1.49 $0.44 $1.05 Drink 972 $1.19 $0.22 $0.97 Total: Item Contribution Margin (Item Cont. Margin) is defined as: Selling price - Item cost = Item Contribution Margin Given the data presented, what is the lowest price at which Lara could sell a burger, fries, and a drink combination and still equall the per customer served contribution margin she currently achieves? Do you think she could sell the bundle for more? Explain your answer.
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