Determine the Menu Price for the Following

question 63

Short Answer

Determine the menu price for the following. Round to the nearest cent. The raw food cost is $3.50, and a 32% food cost is desired. $_______________

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Definitions:

Profits

The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Nominal Interest Rate

The rate of interest before adjustments for inflation, representing the surface rate charged on loans or earned on investments.

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.