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Cost Approaches to Pricing

Nathan and Kylie Morse have invested $500000 in N&K's Place. Their projected costs and activities are as follow:

Variable costs 60%
Monthly fixed costs $30,000
Monthly covers sold 10000
Average tax rate 20%

1. What must the average food service check be to break even?
2. If a monthly profit of $5000 is to be earned, what must the average food service check be?

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Solution Summary

Nathan and Kylie Morse have invested $500000 in N&K's Place. Their projected costs and activities are as follow.

$2.19