Question

1. Karis Elli owns Blazing Fast Subs. Ericka Braelon heads her highly trained staff. They produce custom-ordered subs for guests in less than 2 minutes. Karis forecasts she will sell one sub sandwich to each of the 1,700 guests she estimates she will serve in the coming week Karis uses the CM method of pricing. Based on the revenue and cost forecast she has started to put together in the following spreadsheet, help Karis fill in the information needed to determine her forecasted CM per guest for the coming week. Blazing Fast Subs Guest count forecast 1,700 Revenue forecast $13,500 100% Breads cost $1,300 9.6% Cheese cost $1,200 8.9% Meats cost $ 13.0% Produce cost $210 1.6% Toppings and other food cost $450 3.3% Total cost of food $ 36.4% Cost of labor $ 30.0% Other operating expenses $ 25.0% Profit $ Contribution margin per guests

Answer 1

Blazing Fast Subs Guest Covent forecast | 1700 Revenue Forecast Bread cost Cheese cost 13,500 100*1. 1300 9.64 1200 819). 210 Meats cost 1755 Produce cost Topping & Other food cost 450 Total cost of food Cost of labour 13.1. 1.66 3.3% 4915 36-41 4050 30.1. 25.7. 3375 Other operating expense Profit Contribution Margin per guent 1160 0.682351 8.6% e profit margin Percentage → 8.6.7. (1160X120/13.500) CM per quest → 0.682351 (1160/1700 ☺ CM

Assumed, karis creat new Scottish style sub featuring ruby red smoked salmon and its cost to make 1 unit is $3.90.

If Karish wants to make the same rate of profit margin as she makes from Blazing Fast Subs so she need to sale Scottish style sub at $3.90 + 0.682351= $4.582351.

If karish wants to earn more profit then she can add profit margin as per own desire.