Using factor pricing, what is the selling price for pasta primavera if the raw food cost per portion is $2.65 and the desired food cost percentage is 34%?

Using factor pricing, what is the selling price for pasta primavera if the raw food cost per portion is $2.65 and the desired food cost percentage is 34%?

• A. 3.55
• B. 2.94
• C. 7.79
• D. 5.59

Answer: (C)

Using factor pricing, you convert the cost per portion into a selling price by dividing by the target food cost percentage. In this case, the raw food cost is $2.65 and the desired food cost percentage is 34% (0.34). Calculate the selling price: 2.65 / 0.34 ≈ 7.794, which rounds to $7.79. You can also see this by using the price factor 1/0.34 ≈ 2.94, then 2.65 × 2.94 ≈ 7.79. So the selling price should be about $7.79. Other options don’t fit the required formula or rounding, since they would correspond to different cost percentages or misapplied factors.

Using factor pricing, you convert the cost per portion into a selling price by dividing by the target food cost percentage. In this case, the raw food cost is $2.65 and the desired food cost percentage is 34% (0.34).

Calculate the selling price: 2.65 / 0.34 ≈ 7.794, which rounds to $7.79. You can also see this by using the price factor 1/0.34 ≈ 2.94, then 2.65 × 2.94 ≈ 7.79.

So the selling price should be about $7.79. Other options don’t fit the required formula or rounding, since they would correspond to different cost percentages or misapplied factors.