Last Year an Operation Achieved a 28 Percent Labor Cost

question 21

Multiple Choice

Last year an operation achieved a 28 percent labor cost on sales of $1,500,000. For next year, the manager predicts an 8 percent increase in the prices the operation will pay for labor. The manager will also increase the operation's menu prices by 5 percent. What should be the manager's best estimate for next year's labor cost percentage?

• A) 28.8%
• B) 29.8%
• C) 30.8%
• D) 31.8%