Task 4 - Pricing

a) The owner is concerned about business profitability and is reviewing the current prices on the items listed below. He has asked for the following calculations. Mark-up on food items to be calculated at 75%, drink items at 60% and all coffees at 220%. The current cost of items is:

I. Sandwiches $2.00

II. Muffins $1.50

III. Bottled Water $2.00

IV. Coffee $1.00

In an Excel spreadsheet, calculate the new selling price. Your spreadsheet should show the item name, cost price, mark-up (in dollars and cents) and the selling price. Ensure you use formulas to calculate the value of cells where possible. 

b) As an alternative method of pricing you have decided to suggest to Karl that he work on achieving a set gross profit margin on his sales. Prepare a spreadsheet showing what the prices would be based on the following gross profit margins:

 100% on all food

 180% on all drinks 

c) What is the required outcome or the reason for doing the above calculations?