Our restaurant works on a 225% markup on fine wines. The wine buyer is all...
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Accounting
Our restaurant works on a 225% markup on fine wines. The wine buyer is all excited because he found a value priced wine that will cost the restaurant $8 (wholesale cost). What will the wine sell for on the restaurants wine list (retail selling price)? now compute the equivalent gross profit margin using the familiar income statement format:
Sales
- Cost of Goods Sold
----------------------------
= Gross Profit
You walk into a competitors restaurant and you notice a popular wine is selling at retail for $22.50. You call up your supplier (wine wholesaler) and learn that the cost price for that wine is $6.50 (wholesale price). What markup % is the competition using to calculate the retail price.
A very fancy restaurant that sells to business people on expense account uses a very high 350% markup. Calculate the equivalent gross profit margin. Hint: turn a word problem into a math problem.
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