Product cost percentage and contribution margin methods

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One criticism of both the product cost percentage and contribution margin methods used for determining menu prices is that both are based primarily on the cost of food (or beverage) and ignore the cost of labour. In many foodservice operations, however, the cost of labour equals or even exceeds the cost of food and beverages. Do you foresee the cost of labour playing an increasing role in the calculation of menu prices? explain your answer.

Reference no: EM132124216

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