Lara is the managing owner of the The 1/2 Pound Char-burger kiosk at Metro Airport. Her...

 

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Lara is the managing owner of the "The 1/2 Pound Char-burger" kiosk at Metro Airport. Her menu is limited. She sells burgers, fries, and drinks. Last week, she served 1,000 customers. Most of her guests order at least a burger and a beverage. Some order a burger, fries, and beverage, while still others order only fries and a beverage. Sales data from last week are presented in the following table. "The Char-burger" 1,000 Customers Served Item # Sold Selling Price Item Cost Item Cont Margin Total Cont. Margin Burger 822 $2.99 $1.45 $1.54 Fries 640 $1.49 $0.44 $1.05 Drink 972 $1.19 $0.22 $0.97 Total: Item Contribution Margin (Item Cont. Margin) is defined as: Selling price - Item cost = Item Contribution Margin Given the data presented, what is the lowest price at which Lara could sell a burger, fries, and a drink combination and still equall the per customer served contribution margin she currently achieves? Do you think she could sell the bundle for more? Explain your answer. Lara is the managing owner of the "The 1/2 Pound Char-burger" kiosk at Metro Airport. Her menu is limited. She sells burgers, fries, and drinks. Last week, she served 1,000 customers. Most of her guests order at least a burger and a beverage. Some order a burger, fries, and beverage, while still others order only fries and a beverage. Sales data from last week are presented in the following table. "The Char-burger" 1,000 Customers Served Item # Sold Selling Price Item Cost Item Cont Margin Total Cont. Margin Burger 822 $2.99 $1.45 $1.54 Fries 640 $1.49 $0.44 $1.05 Drink 972 $1.19 $0.22 $0.97 Total: Item Contribution Margin (Item Cont. Margin) is defined as: Selling price - Item cost = Item Contribution Margin Given the data presented, what is the lowest price at which Lara could sell a burger, fries, and a drink combination and still equall the per customer served contribution margin she currently achieves? Do you think she could sell the bundle for more? Explain your answer.

Answer rating: 100% (QA)

Solution Item Sold Selling Price Item Cost Item Cont Margin Total ... View the full answer