In: Finance
Julie Long, the manager of the Hamburger Haven, has been told that to earn a reasonable profit, she should price her hamburgers at 300% of the cost of ingredients. Ms. Long has gathered the following data on the cost of ingredients used to make a hamburger:
1. |
Preformed frozen hamburger patties are purchased from a distributor. Each pound includes seven patties. The distributor charges $1.59 per pound. |
|
2. |
Hamburger buns are purchased for $1.30 per dozen. |
|
3. |
Dill pickle slices are purchased by the gallon jar. A gallon costs $8.97 and contains roughly 2,000 pickle slices. Four slices are placed on each burger. |
|
4. |
Large, ripe tomatoes currently sell for $0.63 each. One tomato yields eight slices, and one slice is placed on each burger. |
|
5. |
A $0.53 head of lettuce provides enough lettuce for 40 burgers. |
|
6. |
Mayonnaise is purchased in 16-ounce jars for $1.62. One-quarter ounce of mayonnaise is placed on a burger. |
|
7. |
A $0.72 jar of mustard provides enough mustard for 150 burgers. |
|
8. |
A $1.06 jar of ketchup is sufficient for 50 burgers. |
|
9. |
A pound of cheese yields 16 slices. Cheese costs $2.61 per pound, and each cheese burger receives 1 slice. |
|
10. |
Onions cost $0.14 each and yield enough chopped onions for 45 hamburgers. |
(A) What is the cost of ingredients for a plain burger (meat and bun only)?
Cost of ingredients for a plain burger with only bun and meat=1.30/12+1.59/7=0.335 $