Question: 5. Sam Guild operates a dining room reserved for doctors in a large hospital in the Northeast. Sam's boss has given Sam a target of
5. Sam Guild operates a dining room reserved for doctors in a large hospital in the Northeast. Sam's boss has given Sam a target of a 33% food cost but has indicated that the target may be adjusted. Currently, the doctors' meals sell for $15.00. Sam knows he currently can spend $4.95 for the food required to produce each meal. Fill out the chart below to help Sarn find out how much he will be able to spend on each meal at various food cost % levels if his boss adjusts his target. Meal Selling Price $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 Food Cost% 20% 25% 30% 33% 35% 40% Amount that Can Be Spent for Food 3.00 3.75 4.50 $4.95 5.25 6.00 How will the doctors' meals likely be affected if the target cost percentage is reduced? If it is increased
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