Chicken Fajitas
Selling Price
(rounded to the
Carne Asada
4.25
20%
Cost of Product ($)
nearest penny)
Steak Fajitas
4.50
Enchila
2.00
2.50
26%
Chicken Fajitas
4.00
Enchiladas Ven
2.00
20%
Carne Asada
4.25
Question 1 (20 points). Rosa and Gabriel own two Mexican grills in a large city in
Texas. Rosa has primary responsibility for the grill in the suburbs, and Gabriel has
Chili Rellenos
2.75
26%
Cheese Enchiladas
2.00
primary responsibility for the grill in the downtown area. The menu items and product
costs are the same in both grills, but the market in the downtown area demands lower
menu prices than that in the suburbs. So, Rosa has set her desired product cost
percentage at 28%, and Gabriel's desired product cost percentage is 32% since he
can't charge as much as Rosa. Rosa likes to use the product cost percentage method to
price her menu items, and Gabriel likes to use the factor method. Help both of them
determine their pre-rounding selling prices.
Beef Enchiladas
2.50
Tacos
0.30
26%
2.00
Bean Chalupas
0.25
20%
Please use the Product Cost Pricing method to calculate the selling price for the items.
Hint Formula: $ Selling Price = \frac{Item Costs}{Item Cost%}
Tortilla Soup
0.30
26%
2.75
0.30
Bean Chalupas
0.25
Tortilla Soup
0.30
Rosa and Gabriel's Mexican Grill (Suburb - Rosa)
Desired product cost percentage
26%
**Formula Hint**
Step 1: Determine the Factor (multiplier) = \frac{1}{Cost%}
Step 2: Item Costs \times Factor = Selling Price
Product Cost Percentage Pricing Method
Rosa and Gabriel's Mexican Grill (Downtown - Gabriel)
Desired product cost percentage
30%
Factor Pricing Method
Cost of Product ($)
Desired Product
Selling Price
Cost Percentage nearest
Steak Fajitas
26%
