Assignment:
Q1 Determine the selling price for these menu items:
| Item |
Cost of |
Desired Product |
Selling Price |
| Product |
Cost Percentage |
| Chicken Breast Dinner |
$ 2.25 |
40% |
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| Seafood Platter |
$ 3.45 |
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| Steak Dinner |
$ 4.99 |
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| Turkey Sandwich |
$ 1.25 |
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| Pork Chop |
$ 2.45 |
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| Hamburger |
$ 1.50 |
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Q2 Determine the selling price for bottled wine using both methods:
| Product Cost |
Cost % |
Selling Price |
| $ 6.00 |
25% |
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| $ 9.00 |
25% |
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| $ 18.00 |
25% |
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| $ 26.00 |
25% |
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| Product Cost |
Contribution Margin |
Selling Price |
| $ 6.00 |
$ 14.00 |
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| $ 9.00 |
$ 16.00 |
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| $ 18.00 |
$ 18.00 |
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| $ 26.00 |
$ 20.00 |
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Q3 Bill is dissatisfied with his high food cost percentage. He decides to incorporate price blending into his pricing strategy in hopes of dropping his food cost % below 35%. He has developed 3 combos and wants to find out if his food cost % is lower after the first week of sales. Calculate his food cost % for each combo.
| Bill's Burger Barn Combo |
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| Item |
Number |
Item Cost |
Total Cost |
Selling |
Total |
Food Cost % |
| Sold |
Price |
Sales |
| Hamburger |
200 |
$1.50 |
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$3.49 |
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| French Fries (large) |
185 |
0.4 |
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1.6 |
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| Soft Drink (16 oz.) |
190 |
0.2 |
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1.35 |
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| Total |
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| Bill's Bacon Cheeseburger Combo |
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| Item |
Number |
Item Cost |
Total Cost |
Selling |
Total |
Food Cost % |
| Sold |
Price |
Sales |
| Bacon Cheeseburger |
160 |
$1.65 |
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$4.29 |
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| Onion Rings |
135 |
0.3 |
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1.4 |
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| Soft Drink (16 oz.) |
155 |
0.2 |
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1.35 |
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| Total |
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| Bill's Chicken Sandwich Combo |
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| Item |
Number |
Item Cost |
Total Cost |
Selling |
Total |
Food Cost % |
| Sold |
Price |
Sales |
| Chicken Sandwich |
75 |
$1.10 |
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$3.15 |
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| French Fries (large) |
75 |
0.4 |
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1.6 |
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| Soft Drink (16 oz.) |
75 |
0.2 |
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1.35 |
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| Total |
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