Question

a coconut margarita costs $2.60 to make. Your target beverage cost percentage is 20%. What is the recommended menu price

Answer 1

we have that

The formula for food cost percentage (FCP) given selling price (SP) and food cost (FC) is FCP = FC/SP x 100

so

in this problem we have

FCP=20%

FC=$2.60

substitute given values

20=(2.60/SP)*100

0.20=2.60/SP

SP=2.60/0.20

SP=$13

the answer is $13