The Night Owl Restaurant generates sales of $1,000,000 a month with variable costs of 35%. The Kobe beef burger is one of the restaurants’ best selling menu items with a price of $13 and a food cost of 30%.  The menu has 20 item and total sales average 20,000 menu items a month, of which 10% are Kobe beef burgers.  What is the profit factor for the Kobe beef burger 1.20 0.56 0.49 1.50

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
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The Night Owl Restaurant generates sales of $1,000,000 a month with variable costs of 35%. The Kobe beef burger is one of the restaurants’ best selling menu items with a price of $13 and a food cost of 30%.  The menu has 20 item and total sales average 20,000 menu items a month, of which 10% are Kobe beef burgers.  What is the profit factor for the Kobe beef burger

1.20
0.56
0.49
1.50 

 

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