Lai Lal Chinese Restaurant has seven items in its breakfast menu. The management of Lai Lai has just acquired some data and they would like to find out both popularity and profitability of its breakfast menu items based on their selling price, food cost percentage, sales volume and contribution margin (CM) from the past period. The financial data for the selling price, sales volume, and individual food cost dollar amounts are presented in the table below:

Breakfast Selling Price Food Cost Menu Item ($) (52 Sales Volume А $10.00 $3.00 250 B $16.00 $6.00 50 с $18.45 $8.00 60 D $14.75 $4.25 300 E $8.75 $2.50 80 F $12.50 $5.75 180 G $9.00 $2.60 280 TOTAL 1.200

Based on the information given in the table above, what are the specific classification of the breakfast menu items based on their profitability and popularity in order?

Based on the contribution margin and the sales volume, Menu Item D is the most profitable and popular.

The contribution margin is the profitability that is shown in the difference between the selling price and the variable cost per unit of an item.

The contribution margin can be computed per unit or in total.  Using the sales volume to multiply the contribution margin per item gives the total contribution margin in dollars.

 Breakfast     Selling Price    Food Cost       Sales     Contribution Margin

Menu Item               ($)                  ($)           Volume         Unit         Total

А                         $10.00             $3.00           250          $7.00      $1,750

B                         $16.00             $6.00             50        $10.00        $500

C                         $18.45             $8.00             60        $10.45        $627

D                         $14.75             $4.25           300        $10.50      $3,150

E                          $8.75             $2.50             80          $6.25        $500

F                        $12.50              $5.75            180         $6.75       $1,215

G                        $9.00              $2.60           280         $6.40      $1,792

TOTAL                                                          1,200

Thus, we can conclude that Menu Item D enjoys the highest profitability and popularity.

Learn more about contribution margin at https://brainly.com/question/30459935.

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X=
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