Question: Burnaby Meadows Restaurant uses a contribution margin pricing system. The restaurants manager decided that the selling price of a new menu item will be $10.00.

Burnaby Meadows Restaurant uses a contribution margin pricing system. The restaurants manager decided that the selling price of a new menu item will be $10.00. The required contribution margin is $4.00. The labor costs are 30% form sales. What is the amount the kitchen staff can spend on product cost when making the item? Select one: a. 6.00 b. $7

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