. Dollar amounts need to be rounded to 2 decimal places and include a dollar sign.

1) There are multiple options for advertising in the PROSIM module. Advertising is an expense that helps increase revenues. Much like other expenses, it is very important to keep advertising costs at an acceptable level (5-7%, as you have learned).

a) Calculate the cost per family for each of the following advertising options:

Campaign	Total Reach	Families	Cost per Week
KDIN Broadcast	206,400	92,000	$10,000
Toronto Life	190,000	64,580	15646
Restaurant Guide	21,000	5,278	206

(3 Marks)

b) If you expected next week's revenue to be $238,000 what would your advertising budget be? Which of the three options from part A would you choose as your advertising medium and why? (4 Marks)

2) Suppose you have the following 4 items on your menu:

ITEM	FOOD COST
Bottled Spring Water	$0.18
Whole Sea Bream	$26.00
Veggie Pizza	$3.25
Truffle Risotto	$15.45

Using the information you've learned from class and from the pricing module, calculate an appropriate selling price for each of the items listed above. (8 Marks