Discuss how consumers might react to the new higher prices

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Reference no: EM133695687

In today's fast-paced world, new laws and technologies come along that can change the way a business operates and its costs structure. Recently, Valley Farms restaurant's costs went up because of a new higher minimum wage in their area. They decide to raise their average meal ticket price, from $14-16, to cover the higher cost. Their variable costs are 60% of the selling price, and their fixed costs are $10,000 per month. Discuss the cost-volume-profit relationships restaurants should consider before raising their prices. Share some of the non-monetary factors to consider before raising a selling price. Discuss how consumers might react to the new higher prices. Discuss non financial considerations that businesses use to retain customers. Please include references.

Reference no: EM133695687

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