Question

You run a small café and want to price a Cheeseburger. The total cost of ingredients (food cost) for one Tournedos is SAR 25.00.given the desired food cost % as 25%, please state the formula of pricing as well as the item selling price

Answer 1

Formula: Selling Price = Food Cost / Desired Food Cost Percentage
In this case, the formula would be:
Selling Price = SAR 25.00 / 0.25
Selling Price = SAR 100.00
Therefore, the selling price of the Cheeseburger should be SAR 100.00.