Question

The as-served cost of a kid's dinner special is $2.25. If the restaurant uses a target cost percentage of 35%, what is the target price of the kid's dinner special?

Answer 1

$3.0375

Explanation:

Original price of dinner = $2.25

If cost percentage of 35%, then the additional cost paid will be;

35% * 2.25

= 0.35 * 2.25

= $0.7875

Target price = Original price + additional cost

Target price = $2.25 + $0.7875

Target price = $3.0375