Question: In a restaurant that uses the actual pricing method, variable costs (excluding direct labor cost) represent 24% of sales. Fixed costs are 37% of sales,

In a restaurant that uses the actual pricing method, variable costs (excluding direct labor cost) represent 24% of sales. Fixed costs are 37% of sales, and profit is targeted to be 5% of sales. What is the preliminary selling price for a dessert with a food cost of $1.10 and a direct labor cost of

$0.67?

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