MNE3701
Assignment 4 Semester 2 2024
Unique Number:
Due Date: 11 October 2024
QUESTION 1 (2 ANSWERS PROVIDED)
Applying a Pricing System for "Fresh Eats Bistro"
Introduction
"Fresh Eats Bistro" is a small, health-conscious eatery located in Randburg that specializes
in serving fresh, organic, and locally sourced meals. The business aims to promote
sustainable living while offering high-quality food. As a new entrepreneur, one of the most
critical tasks for the success of the bistro is determining an effective pricing system. Pricing
DISCLAIMER & TERMS OF USE
1. Educational
affectsAid:
notThese
onlystudy notes arebut
profitability designed
also to serve as educational
customer perception,aids and should
demand, andnotcompetitive
be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conductpositioning. In this discussion,
their own extensive research andI will apply
consult a pricing
with system or
their instructors to academic
"Fresh Eats Bistro,"
advisors using
for specific
assignment requirements.
break-even analysis, markup pricing, and various pricing strategies to ensure both
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
profitability
information andinmarket
provided acceptance.
these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying
Break-Even it to their assignments.
Analysis
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and
Break-even inspiration,
analysis is anbut any direct
essential toolreproduction of the
for determining thecontent without
minimum salesproper
volume acknowledgment
required and
citation may constitute academic misconduct.
to cover both fixed and variable costs. For "Fresh Eats Bistro," this involves examining the
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses,costs
or consequences
associatedarising
with from the use of
ingredients, the notes.
labor, rent, This includes,
utilities, andbut is not
other limited to,expenses.
operating poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
Suppose the bistro’s fixed costs, which include rent, utilities, and administrative expenses,
provided.
amount to R50,000 per month. Additionally, variable costs (ingredients, packaging, etc.) for
each meal average R40.
