The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing method?

Question

Quizplus · Accepted Answer

The prime cost of the item is the sum of the food cost and the labor cost, which is $3.85 + $2.95 = $6.80. To find the base selling price with a desired prime cost percentage of 60%, divide the total prime cost by the desired percentage: $6.80 / 0.60 = $11.33.

The Food Cost of a Menu Item Is $3