Expected Profit + Food Cost (Variable Cost) + Semi Variable Cost + Fixed Cost = Selling Price.
Profit must be planned, costs must be identified and controlled, in order to achieve sale budget . The total fixed cost will remain same irrespective of the sale up to certain level. If the sale budget is not met then the fixed cost per cover or per dish will increase and the restaurant will make loss. On the contrary if the actual sale is more than the budget sale then restaurant will make more profit than planned as the total fixed cost will remain same and due to increase in sale the fixed cost per cover / dish will reduce and hence restaurant will make more profit than planned.
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