1. Julian Lemon is the owner of The Vin Avec Des Amis (VADA) Wine Bar. Julian...

 

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1. Julian Lemon is the owner of The Vin Avec Des Amis (VADA) Wine Bar. Julian sells bottled wine and wine by-the-glass. For his wine by-the-glass sales, he has established the following product cost targets based upon his actual purchase cost for the wines. Wine Cost Target Cost % $6.00 or more per bottle 18% Less than $6.00 per bottle 15% Julian utilizes 750-ml bottles for his by-the-glass wine program. Each bottle yields five servings. After making the calculations needed to achieve his target cost percentages, Julian always rounds up to the nearest 25 cent level to create his actual suggested (rounded) menu price because that way his menu prices always end in 0.00, 0.25, 0.50, or 0.75. Julian is now creating menu prices for four new lower-cost wines. Complete his wine by-the- glass costing and pricing worksheet. Then answer the questions that follow: Product 750-ml Glasses Cost Target Calculated Suggested Cost Selling Price (Rounded) Menu Cost % Actual Bottle per per Glass Cost ($) Bottle ($) Price ($) % ($) Old Oak Chardonnay 7.60 18% Periot Pinot 6.45 18% Grigio Nante 6.85 18% Shiraz California 5.10 15% Coast Zinfandel a. What should be the suggested (rounded) menu price for the Old Oak Chardonnay? b. What should be the suggested (rounded) menu price for the Nante Shiraz? c. Assuming no product waste, what should be the actual wine cost percentage for the Periot Pinot Grigio if the operation charges the suggested (rounded) selling price? d. Assuming no product waste, what should be the actual wine cost percentage for the California Coast Zinfandel if the operation charges the suggested (rounded) selling price? 5. 5. 1. Julian Lemon is the owner of The Vin Avec Des Amis (VADA) Wine Bar. Julian sells bottled wine and wine by-the-glass. For his wine by-the-glass sales, he has established the following product cost targets based upon his actual purchase cost for the wines. Wine Cost Target Cost % $6.00 or more per bottle 18% Less than $6.00 per bottle 15% Julian utilizes 750-ml bottles for his by-the-glass wine program. Each bottle yields five servings. After making the calculations needed to achieve his target cost percentages, Julian always rounds up to the nearest 25 cent level to create his actual suggested (rounded) menu price because that way his menu prices always end in 0.00, 0.25, 0.50, or 0.75. Julian is now creating menu prices for four new lower-cost wines. Complete his wine by-the- glass costing and pricing worksheet. Then answer the questions that follow: Product 750-ml Glasses Cost Target Calculated Suggested Cost Selling Price (Rounded) Menu Cost % Actual Bottle per per Glass Cost ($) Bottle ($) Price ($) % ($) Old Oak Chardonnay 7.60 18% Periot Pinot 6.45 18% Grigio Nante 6.85 18% Shiraz California 5.10 15% Coast Zinfandel a. What should be the suggested (rounded) menu price for the Old Oak Chardonnay? b. What should be the suggested (rounded) menu price for the Nante Shiraz? c. Assuming no product waste, what should be the actual wine cost percentage for the Periot Pinot Grigio if the operation charges the suggested (rounded) selling price? d. Assuming no product waste, what should be the actual wine cost percentage for the California Coast Zinfandel if the operation charges the suggested (rounded) selling price? 5. 5.

Answer rating: 100% (QA)

a b c d e f g Product 750 ml Bottle cost Glasses per bottle Cost per glass ab Target Cost Calcul... View the full answer