Below, you are given the specific product, labor and operating cost information you need to calculate the menu price for a menu item using each of the following pricing methods. Find the final selling price (and put it in typical dollar/cents format $00.00) for each.

Food Cost Percentage Pricing Method

1. Food cost is $5.00.
2. Desired food cost percentage is 35%.

Answer:

Contribution Margin Pricing Method

1. Nonfood cost is $500,000.
2. Profit is $65,000.
3. Number of customers is 90,000.
4. Food cost is $10.00.

Answer:

Prime Cost Pricing Method

Tip: Round up ratio first and then do multiplication

1. Labor cost is $2.00.
2. Food cost is $3.00.
3. Target labor percentage is 15%.
4. Target food cost percentage is 20%.

Answer:

Ratio Pricing Method

1. Nonfood cost is $500,000.
2. Profit is $90,000.
3. Food cost is $300,000
4. Food cost is $5.00 (per dish).

Answer: