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

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 $4.57 (entr?e cost = $3.12; plate cost = $1.45)

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?

Transcribed Image Text:

● ● Revenue Food cost Labor cost Other non-food costs Desired profit Number of guests $1,187,000 $403,580 (includes entrée costs of $274,434) $367,970 (excludes labor) $316,550 $98,900 107,900 ● ● Revenue Food cost Labor cost Other non-food costs Desired profit Number of guests $1,187,000 $403,580 (includes entrée costs of $274,434) $367,970 (excludes labor) $316,550 $98,900 107,900

Answer rating: 100% (QA)

a Base selling price 1 403580 1187000 457 457 034 1344 b Multiplier Revenue Entre costs 1187000 2744... View the full answer