Beverage PricingYou want to have variety in your beverages, but desire to have a healthier selection. As a result, theofferings are flavored sparkling waters and juices. Water flavors include cucumber basil, Raspberry mintand 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 iceto 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 facilitygarden, so most of the year the cost is negligible. Lemons and limes cost $2.50/lb 3 lemons and 4limes/lb and lemons yield 10 slices and limes 6 slices, and each beverage gets two slices of each. Thesparkling water comes from cans of club soda that cost 0.25/can. Each beverage uses 1 can. Thedesired food cost is 18%IngredientJuicesRaspbWaterCucumberWaterLemon lime waterLemonsLimesShow your work.Cost/unitCost/amt neededfor 1 servingTotal cost foritemRetail or salesprice

Beverage pricing is a method where all the ingredients required in a particular beverages in…

Answered: Ingredient Cost/unit Cost/amt needed…

Business

Accounting

Ingredient Cost/unit Cost/amt needed for 1 serving Total cost for item Retail or sales price

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose you manage the local Scoopy’s ice cream parlor. In addition to selling ice cream cones, you make large batches of a few flavors of milk shakes to sell throughout the day. Your parlor is chosen to test the company’s “Made-for-You” system. This new system enables patrons to customize their milk shakes by choosing different flavors. Customers like the new system and your staff appears to be adapting, but you wonder whether this new made-to-order system is as efficient as the old system in which you just made a few large batches. Efficiency is a special concern because your performance is evaluated in part on the restaurant’s efficient use of materials and labor. Your superiors consider efficiency variances greater than 5% to be unacceptable. You decide to look at your sales for a typical day. You find that the parlor used 390 pounds of ice cream and 72 hours of direct labor to produce and sell 2,000 shakes. The standard quantity allowed for a shake is 0.2 pound of ice cream and…
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