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The present cost to Lil's Restaurant for one a la carte steak is $3.20. This is 40 percent of the menu sales price. If you were a banquets manager planning a function six months from now and planning to use this item, what unit cost would you plan for?
The banquet manager in the question above 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 sales price per person be for this banquet if the desired cost percentage is 40 percent?
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