CASE STUDY George is the manager of the Eatery restaurant. The restaurant has 100 seats and has been open for 10 years. Historically the restaurant was fully booked every day, however lately this has changed. George has been reviewing the numbers for the June, he is disappointed to see that the overall revenues are still down. In the month of May George was concerned to see that the overall revenues for the restaurant kept trending down and decided to introduce a new updated menu in June hoping it would attract more customers. Chef Carla decided to only use local products only for the new menu. The new menu prices where determined by using a traditional pricing model; Product Cost Percentage. The cost prices of the local products are higher and by using this model the selling price for the menu items increased automatically. However, because of the quality of these local products, George and Carla were convinced people would be happy to pay more for these new menu items. George and Carla are desperate what to do next? QUESTIONS Question 1 (1 mark) Using the Product Cost Percentage Model, what is the new selling price for the below menu items? Desired Cost % Item Cost $ Selling Price Eatery Burger & Fries $8.50 $ Chicken Club Sandwich 38% $7.25 $ Daily soup & Salad 35% $8.80 $ I 40%