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What is a formula used to determine cost of bar drinks?
The most commonly used formula for determining the cost of a bar drink is the "Cost Plus Markup" method.
Formula: Cost Price x Markup Percentage + Cost Price
Example: A bottle of vodka costs $10. You want to sell each drink for a 200% profit. First, divide the 200% markup percentage by 100 to get the decimal markup price = 200/100 = 2. Now multiply the cost price by the markup price and then add the cost price back on. 10 x 2 + 10 = 30. Each drink will cost $30.
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