Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International marketing

Authors: Philip R. Cateora, Mary C. Gilly, John L. Graham

15th Edition

9789339204464, 9780073529943, 9339204468, 007352994X, 978-0077446956

More Books

Students also viewed these Marketing questions

Question

From 1 9 8 9 t o 2 0 2 1 , the wealth share o f the top 1 percent

Answered: 1 week ago