The Target Market and Concept, to a Large Extent, Will

question 8

Multiple Choice

The target market and concept, to a large extent, will determine the

• A) contribution margin
• B) menu prices
• C) rental/lease costs
• D) food cost percentage

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Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Short-term Debt

Borrowings that are due for repayment within one year.