Solutions For Pricing Mar 4

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QUESTION

Variable (Ingredient)
Units costs Fixed costs Staff costs
Either values
Per unit Weekly Per unit Weekly Per unit Weekly from column
Cheeseburger 8000 0.99 7920 0.225 1800 0.3 2400 C or colum
D
Deluxe Hamburger 4000 1.86 7440 0.45 1800 1.2 4800
Fries 12000 0.3 3600 0.15 1800 0.1 1200
Soda 16000 0.33 5280 0.1125 1800 0.075 1200
Coffee 2000 1.04 2080 0.9 1800 1.2 2400
QUESTION 5
QUESTION 2 QUESTION 3 QUESTION 4
New
Total cost (Blue + Purple Price (per Variable
Total fixed and staff costs + green) Markup unit) cost

Per unit (E + Weekly Per unit (C + Weekly (D + (C X 2)


G) (F+H) E + G) F + H)
0.525 4200 1.515 12120 100 3.03 1.98
1.65 6600 3.51 14040 100 7.02 3.72
0.25 3000 0.55 6600 50 0.825 0.6
0.1875 3000 0.5175 8280 50 0.77625 0.66
2.1 4200 3.14 6280 200 12.56 2.08
Cheeseburger profits are going down (fro
ingredient costs double. It makes sense bec
have doubled, but price is still
QUESTION 5

New total
New profit Old profit
cost per unit

(P + E + G) (O-Q) (O-L)

2.505 0.525 1.515


5.37 1.65 3.51
0.85 -0.025 0.275
0.8475 -0.07125 0.25875
4.18 8.38 9.42
heeseburger profits are going down (from 1.515 to 0.525) if
gredient costs double. It makes sense because ingredient costs
have doubled, but price is still the same.

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