Ingredient Cost/unit Cost/amt needed for 1 serving Total cost for item Retail or sales price
Ingredient Cost/unit Cost/amt needed for 1 serving Total cost for item Retail or sales price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Beverage Pricing
You want to have variety in your beverages, but desire to have a healthier selection. As a result, the
offerings are flavored sparkling waters and juices. Water flavors include cucumber basil, Raspberry mint
and sparkling lemon lime with fresh lemon and lime slices. The juices include watermelon,
pomegranate, and mango. You have been able to purchase all the juices in gallon containers at $6 to 8/
gallon and plan to serve them in 12 oz portions using 4 oz of ice. You have already figured the cost of ice
to be $0.03/oz.
For the waters Raspberries are $4.00/pint, and each serving uses 1 ounce; and Cucumbers are $0.99/lb,
which yield about 60 slices and each beverage gets 4 slices. The mint and basil you grow in your facility
garden, so most of the year the cost is negligible. Lemons and limes cost $2.50/lb 3 lemons and 4
limes/lb and lemons yield 10 slices and limes 6 slices, and each beverage gets two slices of each. The
sparkling water comes from cans of club soda that cost 0.25/can. Each beverage uses 1 can. The
desired food cost is 18%
Ingredient
Juices
Raspb
Water
Cucumber
Water
Lemon lime water
Lemons
Limes
Show your work.
Cost/unit
Cost/amt needed
for 1 serving
Total cost for
item
Retail or sales
price
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