In pricing menu items, Coquitlam Grill restaurant uses the contribution margin pricing system. Maria Stevens,...
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Accounting
In pricing menu items, Coquitlam Grill restaurant uses the contribution margin pricing system. Maria Stevens, who works as the restaurants manager, has calculated that the cost to make a veggie burger is $4.60. Average sale per guest is $16. Average variable cost per guest is $10. Food cost percentage is 30%. Based on the contribution margin pricing system, the base selling price of the veggie burger should be
a.
$15.33
b.
$10.60
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