What is the menu item cost percentage of a Caprese Salad in an Italian Restaurant that has a food cost of PHP 350.00 and the menu price is PHP 950.00?
Understand the Problem
The question is asking for the cost percentage of a menu item (Caprese Salad) in an Italian restaurant. To solve this, we will use the formula for cost percentage, which is (Food Cost / Menu Price) * 100. We will plug in the values provided: food cost of PHP 350.00 and menu price of PHP 950.00.
Answer
The cost percentage of the Caprese Salad is approximately $36.84\%$.
Answer for screen readers
The cost percentage of the Caprese Salad is approximately $36.84%$.
Steps to Solve
- Identify the values to plug into the formula
From the problem, we have:
- Food Cost = PHP 350.00
- Menu Price = PHP 950.00
- Write down the cost percentage formula
The formula for calculating the cost percentage is given by:
$$ \text{Cost Percentage} = \left( \frac{\text{Food Cost}}{\text{Menu Price}} \right) \times 100 $$
- Substitute the values into the formula
Now we substitute the known values into the cost percentage formula:
$$ \text{Cost Percentage} = \left( \frac{350}{950} \right) \times 100 $$
- Calculate the fraction
First, calculate the fraction:
$$ \frac{350}{950} = 0.368421 $$ (approximately)
- Multiply by 100 to find the cost percentage
Now multiply the result by 100 to convert it into a percentage:
$$ \text{Cost Percentage} = 0.368421 \times 100 = 36.8421 $$
- Round to two decimal places
Finally, round the cost percentage to two decimal places:
$$ \text{Cost Percentage} \approx 36.84% $$
The cost percentage of the Caprese Salad is approximately $36.84%$.
More Information
Understanding cost percentage is crucial for restaurants as it helps in pricing their menu items effectively while ensuring profitability.
Tips
- Failing to multiply by 100 after calculating the fraction.
- Not rounding the final answer when required.
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