A Menu Item Sells for $8

question 34

Multiple Choice

A menu item sells for $8.00, has a food cost of 25%, and it is sold to 100 guests. What is the item's total contribution margin?

• A) $200
• B) $300
• C) $600
• D) $700

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Definitions:

Fund Benefits

Refers to the advantages or financial aid provided by an investment fund to its investors.

Qualified Plan

A retirement plan that meets the requirements of the Internal Revenue Code and ERISA, offering tax benefits to both employers and employees.

Tax Deductions

Expenses that can be subtracted from gross income to reduce the total amount of income tax owed.

Retirement Benefits

Financial support or services provided to employees after they exit the workforce, including pensions, health insurance, and other perks.