Question

for a particular item in a shop,which of the following will have the lowest selling price?​

Answer 1

Answer:

Selling Price

Price can be a sensitive issue. If priced too high, a dish may not sell or customers may complain or not return to the

business as they may feel they have not received value for money. Alternately, if a dish is underpriced and does not

make a profit, the business will be damaged financially and will face problems in the future if it does not rectify the

situation. A method to ensure that a profit margin is achieved is to build a target percentage of gross profit into the selling price.

For example, if the food costs for a dish total £3.00 and a gross profit target is set at 70%, the food costs as a percentage of the selling price can only represent 30%. It is important to note that the selling price is the total amount of money that will be received so this has to represent 100% for the purpose of this calculation. In basic terms, food costs + gross profit = selling price.