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