A menu item costs a manager $2.20 to produce. The manager wants to achieve a 40% food cost on the item. What should be this item's selling price?

Name: A menu item costs a manager $2.20 to produce. The manager wants to achieve a 40% food cost on the item. What should be this item's selling price?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To achieve a 40% food cost, the cost of the item ($2.20) should be 40% of the selling price. Therefore, the selling price should be $2.20 / 0.40 = $5.50.

A Menu Item Costs a Manager $2