Question: A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout from a simulated mountain
A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout from a simulated mountain stream or simply asking the waiter to net the trout for them. Operating the stream would require $11,000 in fixed costs per year. Variable costs are estimated to be $6.40 per trout. The firm wants to break even if 800 trout dinners are sold per year.
What should be the price of the new item?
$nothing.
(Enter
your response rounded to the nearest
penny.)
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