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Prime Cost = Raw Materials + Direct Labor. The prime cost of a single bed frame is ($6,500 + $750) / 10, or $72.50. In order to generate a profit, the company must sell each frame for more than $72.50.
Or from a different perspective, (Sales Price per Person)x(desired Food Cost %)=(Food Cost per Person) if you want to figure out what you can offer for what the market will bear. Then you can check your projections against reality by (Buffet Revenue)/(Food Cost of eaten and wasted)=(Actual Food Cost %).