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Using the Ingredient Mark-Up Approach to Pricing, what should be the price of the chicken dinner,...

Using the Ingredient Mark-Up Approach to Pricing, what should be the price of the chicken dinner, when the multiple is 4?

Ingredient Cost

Chicken - 2 pieces $ 0.89

Baked potato w. sour cream $ 0.29

Roll and Butter $ 0.11

Vegetable $ 0.19

Salad w. Dressing $ 0.50

Coffee - refills free $ 0.15

Total Cost $ 2.13

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Answer #1

Solution:

Total cost of the ingredients of the chicken dinner =$2.13(given)

Under the ingredient markup approach with a desired multiple of 4 ,the price of chicken dinner

=$(4*2.13)=$8.52

Under the ingredient markup approach to pricing the cost of the ingredients is multiplied by a multiplier which is based on the desired level of profit margin.

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