correct answers GRADED A
+ 2025-2026
Prime cost method - ANS-Raw cost + labor cost
1. Add up food cost % and labor cost %
2. Find out how long it took to make a food item to figure out how much $ is
spent in labor
3. Add raw food cost $ + labor = x
4. X / total percentage in step 1 = selling price
Traditional pricing method aka markup FACTOR method - ANS-Raw food cost /
food cost percentage OR raw food cost x mark up factor
To find the mark up factor..take the food cost percentage (25%) and divide it into
100. So = 4 mark up factor
Average Check - ANS-Total sales for the (day, month, year etc.) / # of checks for
the (day, month, year etc.)
If a restaurant's daily sales were $4,320 and they had 350 transactions, what
was the average amount spent per customer? - ANS-$12.34 ($4, =
$12.34)
If Starbucks sold 10,000 coffees a month and their monthly sales were $25,000
how much was the average price of coffee? - ANS-$2.50 ($25,,000 =
$2.50)
A lemonade stand sold $40 worth of lemonade at a $1.75 per cup. How many
cups of lemonade did the lemonade stand sell? - ANS-23 cups ($40 / $1.75 =
22.8)
Raw food cost is $2.50 and the food cost percentage is 35%. What is the selling
price? - ANS-$7.14 ($2..35 = $7.14 or $2.50 x 2.85 = $7.14)
, You can either just use the food cost percentage or find the mark-up factor
The selling price is $5.50 and the mark-up factor is 2.5. What is the raw food
price? - ANS-$2.20 ($5..5 = $2.20)
The mark-up factor is 3.5, what is the food cost percentage? - ANS-28.57% (100 /
3.5 = 28.57%)
Using the prime cost method determine the selling price
Labor = $12/hr
It takes 5 mins to make X
Raw food cost = $1.80
Food cost % = 33%
Labor cost percentage = 46.7% - ANS-$3.50
1. Food cost % + labor cost % = 0.80
2. $12/60 minutes = 0.20 a min...x 5 mins total = $1 in labor
3. $1.80 + $ 1 = $2.0
4. $2..8 = $3.50 selling price
Using prime cost method determine the selling price
Labor = $25/hr
It takes 15 mins to make X
Raw food cost = $7.50
Food cost % = 25%
Labor cost percentage = 55% - ANS-$17.19
1. Food cost % + labor cost % (25% + 55% = 80 %)
2. $25/60 = 0.42/min x 15 = $6.25 in labor
3. $7.50 + $6.25 = $13.75
4. $13..8 = $17.19 selling price
Using prime cost method determine the selling price