Lil's Restaurant's current cost for an a la carte steak is $3.20. This is 40% of the sale price of the menu.
a. What is the current sale price?
	Steak cost at time 0	ps
	Food cost %
	Steak price at time 0
b. With an annual inflation rate of 5 percent, what is the likely cost of this steak one year from now?
	Steak cost at time 0
	annual inflation rate
	Cost at time 1
C. Using the cost calculated in (b) above, what should the menu sales price for this item be in one year if the cost percentage at that time is 38 percent?
	Cost of steak at time 1
	Food cost %
	Steak price at time 1
d. If you were a catering manager planning a function six months from now and you plan to use this item, what unit cost would you plan on?
	Steak cost at time 0
	annual inflation rate
	Steak cost over time .5
e. The banquet manager in (d) has already calculated that the other items included in this banquet menu will have increased in cost in six months from $2.00 to $2.11. What should the selling price per person be for this banquet if the desired cost percentage is 40 percent?
	Steak cost over time .5
	Other costs over time .5
	Total cost over time .5
	Food cost %
	Total price over time .5

Answer rating: 100% (QA)

a What is the current sale price Given that the current cost of the steak is 320 this cost represents 40 of the sale price Sale Price Steak Cost Cost ... View the full answer