Question: Ming has recently inherited the Quick Wok restaurant started by her parents. It is located in a busy strip shopping area surrounded by many office
Ming has recently inherited the Quick Wok restaurant started by her parents. It is located in a busy strip shopping area surrounded by many office complexes, but it is also near many QSRs The Quick Wok has been successful because of the quality of its food, but Ming feels that it could do even better at lunchtime if she could create a Value Meal option to appeal to the priceconscious consumer. Because both a McDonald's and a Wendy's are within a quartermile of her store, she has determined that her own Value Meal menu item needs to be priced at $ She creates a stirfry dish that, when served with white rice, has a portion cost of cents. Her beverages have a cost of cents. The beverages already sell for $ each, and she does not want to raise this price.
She believes she could sell of the new Value Meals per day if she offers the stirfry dish at $ As well, she seeks an overall product cost percentage of percent. From historical data she knows that percent of her customers purchase a drink with their meals.
Based on the information given, calculate the overall product cost percentage of the Value Meals and beverages. Would you advise Ming to go for it Why or why not?
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