Question: A restaurant owner sets her menu prices at a predetermined percentage of her input costs for food, ingredients, and beverages. The second column of the

A restaurant owner sets her menu prices at a predetermined percentage of her input costs for food, ingredients, and beverages. The second column of the following table shows the prices as a percentage of these costs for various menu categories. The third column shows the breakdown of the restaurant’s overall revenue from the four menu categories.
a. On average, what are menu prices as a percentage of the basic input costs?
b. Overall, what are the input costs as a percentage of revenue?

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