What should the potential food cost (in dollars) at the Inn have been given the following sales mix? Potential
Item Number Sold Selling Price Food Cost %
Rib-Eye Steaks 2,000 $23.75 25 %
Fish 1,000 $28.00 32 %
Chicken 1,500 $21.50 20 %

Question

Quizplus · Accepted Answer

To calculate the potential food cost, we multiply the number of items sold by their selling price and then apply the food cost percentage for each item. For Rib-Eye Steaks: 2,000 * $23.75 * 25% = $11,875 For Fish: 1,000 * $28.00 * 32% = $8,960 For Chicken: 1,500 * $21.50 * 20% = $6,450 Adding these together gives us the total potential food cost: $11,875 + $8,960 + $6,450 = $27,285.

What Should the Potential Food Cost (In Dollars) at the Inn