Tim, having just completed his MBA, is also closely reviewing his pricing and has decided to calculate the cost of his famous “Heart Attack” burger, that features a half-pound of freshly ground beef, two slices of cheese, three strips of bacon and a fried egg, plus all the fixings. The price is $8.00. Here is the detailed cost information:
· Beef: $3.50 per pound
· Cheese: $0.08 per slice
· Bacon: $0.04 per strip
· Egg: $0.90 per dozen
· Bun: $0.20 per bun
· Average other add-ons: $0.30 per burger (includes special sauce, lettuces, onions, etc.)
Using the above information, please calculate the following:
- Total cost per burger: _______
- CM per burger: _____
- CM %: _________
32) please explain how Tim should use this information and what changes he should make, if any, for the pricing and promotion of his Heart Attack burger.
