d. Calculate the standard food cost percentage if sales are 25, 100, 25 units e.
ID: 2561541 • Letter: D
Question
d. Calculate the standard food cost percentage if sales are 25, 100, 25 units
e. Compute the contribution margin
A fast food restaurant has only three items on its menu.
a. Calculate the fstandard food cost percentage for each item
b. Calculate the standard food cost percentage if 50 of each are sold
c. Compute the contribution margin
. Analysis: Which scenario would you find more advantageous and why?
Item Cost Price Food Cost % Quantity Total Cost Total Sales 1 $2.20 $6.80 50 2 3.25 8.80 50 3 3.75 9.85 50 Total 150 Contribution Margin ($,%). Analysis: Which scenario would you find more advantageous and why?
Item Cost Price Food Cost % Quantity Total Cost Total Sales 1 $2.20 $6.80 25 2 3.25 8.80 100 3 3.75 9.85 25 Total 150 Contribution Margin ($,%)Explanation / Answer
Analysis: Second scenario is more advantageous, because of more contribution
Item Cost Price Food Cost % Quantity Total Cost Total Sales 1 $2.20 $6.80 32.35% 50 $110.00 $340.00 2 3.25 8.8 36.93% 50 $162.50 $440.00 3 3.75 9.85 38.07% 50 $187.50 $492.50 Total 150 $460.00 $1,272.50 standard food cost percentage if 50 of each are sold 36.15% Contribution Margin ($) $812.50 Contribution Margin (%) 63.85%Related Questions
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