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The menu at Laras Salads and Subs consists of only four items. These are salads, subs, drinks, and chips. Laras menu and the historical sales
The menu at Laras Salads and Subs consists of only four items. These are salads, subs, drinks, and chips. Laras menu and the historical sales data she has collected over the past three months are presented as follows. Lara is considering the potential impact on revenues of creating a value meal by bundling a salad, sub, chips, and drink and pricing the fouritem bundle at $9.99. Currently, her menu mix (based on a 1,000guest sample) and selling prices are as shown:
\begin{tabular}{|l|c|c|c|} \hline Menu Item & #Soldper1000Guests & SellingPrice & Revenue \\ \hline Salad & 660 & $3.49 & $2,303.40 \\ \hline Sub & 812 & 6.99 & \\ \hline Chips & 420 & 0.99 & Q2 \\ \hline Drinks & 940 & 0.99 & \\ \hline Total Revenue & & & Q3 \\ \hline Check Average & Q1 & & \\ \hline TotalRevenue@25%packagepurchases & & & Q4 \\ \hline TotalRevenue@50%packagepurchases & & & Q5 \\ \hline \end{tabular}Step by Step Solution
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