Menu engineering classifies menu items based on only profitability. True False If the elasticity of demand exceeds 1 , the demand is said to be inelastic. True False Typically, the 'multiple' in ingredient cost approach is greater than the one in prime ingredient approach. True. False When demand is inelastic, a price increase will total revenues. Decrease Increase Decrease, then increase Have no effect on Formal approaches to pricing hospitality products and services take into account: Pricing by competitors. What the market will bear. Costs. Intuitions of experienced managers. Prime ingredient mark-up does not considers all product costs in a meal. True False Menu engineering classifies menu items that are low in menu mix and low in contribution margin as Puzzles True False Using the ingredient markup approach, if the desired food cost percentage for the chicken dinner is 27%, what would be the markup 'Multiple'? 2.70 3.70 4,70 2.57 Which of the following is not a formal approach to pricing? Ingredient mark-up approach $1 per $1,000 approach Competition-based pricing Hubbart formula The GoofyTower is a 300-room hotel that was built ten years ago for a total project cost of $15,000,000. The market value of the facility is now estimated at $24,000,000. Help Ms. Tina, the owner, using $1 per $1,000 approach to price the rooms. $60 $55 $50 $50,000