Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The manager of the Vancouver Premier bistro has the following operating data available: - Revenue $1,187,000 - Food cost $403,580 (includes entre costs of $274,434)
- The manager of the Vancouver Premier bistro has the following operating data available: - Revenue $1,187,000 - Food cost $403,580 (includes entrée costs of $274,434) - Labor cost $367,970 - Other non-food costs $316,550 (excludes labor) - Desired profit $98,900 - Number of guests 107,900 Use the above information to establish the base selling price of a menu item with alternative pricing methods. Note: the item to be priced has a food cost of $4.57 (entrée cost=$3.12; plate cost=$1.45) a. What is the approximate base selling price using the ingredients mark- up method? b. What is the approximate base selling price using the prime ingredients mark-up method? c. What is the approximate base selling price using the mark-up with accompaniment costs method? d. What is the approximate base selling price using the contribution margin pricing method?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started