Annum
Food Costing
Solved problems 1. A restaurant requires a following profits on the selling prices of various items or dishes:- a. Paulet Saute Maringo 60% b. Chicken a la kieve 45% c. Coffee 80%
You are required to:- a) Find out the selling price of the above items/ dishes if the cost were:- a. Paulet sauté maringo Rs 50 b. Chicken a la kieve Rs 70 c. Coffee Rs 10. b) List the factors that must be considered when deciding on the selling price.
Answer:- a) Using the formula:-
Selling Price = Total Cost x (1 + Mark-Up Percent) i. Paulet sauté meringo
Selling price = 50 x (1 +60%)
=50 X 1.6
= Rs 80 ii. Chicken a la kieve selling price = 70X (1+ 70%)
= 70 X 1.7
=Rs 119 iii. Coffee
Selling price = 10 X (1+80 %)
= 10 X 1.8
= Rs 18.
a. List the factors that must be considered when deciding on the selling price.
Ans:
Factors that need to be considered in the menu pricing include: * Elasticity of demand, or whether a change in selling prices will have a significant effect on customer demand. * Perception of value, or what a customer perceives the meal or food item is worth regardless of what it costs to produce. * Effect of competition by which competition can hold selling prices down or lack of competition can allow higher prices than normal. * Whether the operation might try to increase profit by using low selling prices to increase volume or concentrate on higher unit profits with fewer unit sales.
Besides the menu, the other major costs in foodservice industry include:
a) Purchasing of food: As mentioned earlier, the quantity of raw materials ordered should be as accurate as possible since storage and perish ability in the nature of food materials can be a cause of loss. Proper inventory of the raw materials in storage will ensure that misuse
Solved problems 1. A restaurant requires a following profits on the selling prices of various items or dishes:- a. Paulet Saute Maringo 60% b. Chicken a la kieve 45% c. Coffee 80%
You are required to:- a) Find out the selling price of the above items/ dishes if the cost were:- a. Paulet sauté maringo Rs 50 b. Chicken a la kieve Rs 70 c. Coffee Rs 10. b) List the factors that must be considered when deciding on the selling price.
Answer:- a) Using the formula:-
Selling Price = Total Cost x (1 + Mark-Up Percent) i. Paulet sauté meringo
Selling price = 50 x (1 +60%)
=50 X 1.6
= Rs 80 ii. Chicken a la kieve selling price = 70X (1+ 70%)
= 70 X 1.7
=Rs 119 iii. Coffee
Selling price = 10 X (1+80 %)
= 10 X 1.8
= Rs 18.
a. List the factors that must be considered when deciding on the selling price.
Ans:
Factors that need to be considered in the menu pricing include: * Elasticity of demand, or whether a change in selling prices will have a significant effect on customer demand. * Perception of value, or what a customer perceives the meal or food item is worth regardless of what it costs to produce. * Effect of competition by which competition can hold selling prices down or lack of competition can allow higher prices than normal. * Whether the operation might try to increase profit by using low selling prices to increase volume or concentrate on higher unit profits with fewer unit sales.
Besides the menu, the other major costs in foodservice industry include:
a) Purchasing of food: As mentioned earlier, the quantity of raw materials ordered should be as accurate as possible since storage and perish ability in the nature of food materials can be a cause of loss. Proper inventory of the raw materials in storage will ensure that misuse