Problem $4$

The manager uses the mark$-$up with accompaniment cost method to establish a base selling price. What is that price when the entr$$e cost is $$2\mathrm{.}12,$ the plate cost is $$1\mathrm{.}70,$ and the mark$-$up multiplier is $2\mathrm{.}1?$

Problem $5$

The manager of the University Square Bistro has the following operating data available:

Revenue

Food cost

Labor cost

Other non$-$food costs

Desired profit

Number of guests

$$1,187,000$

$$403,580($includes entr$$e costs of $$274,434)$

$$367,970$

$$316,550($excludes labor$)$

$$98,900$

$107,900$

The Menu: The Foundation for Control $105$

Use the above information to establish the base selling price of a menu item with alternative pricing methods. Note: the item to be priced has a food cost of $$4\mathrm{.}57($entr$$e cost $=$$$3\mathrm{.}12$; plate cost $=$$$1\mathrm{.}45)$

a$.$ What is the approximate base selling price using the ingredients mark$-$up method?

b$.$ What is the approximate base selling price using the prime ingredient mark$-$up method?

c$.$ What is the approximate base selling price using the mark$-$up with accompaniment costs method?

d$.$ What is the approximate base selling price using the contribution margin pricing method?

e$.$ What is the approximate base price using the ratio pricing method?

f$.$ What is the approximate base selling price using the simple prime costs method?