Question

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)?

Answer 1

Cost of ingredients for a plain burger with only bun and meat=1.30/12+1.59/7=0.335 $