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Micah's Food Service is adding another catering vehicle to her fleet that she will use for festivals, county fairs, and other events. The new food service truck will cost $150,000 equipped with all the food preparation appliances: Her variable costs per meal served will average $8 each. She expects to sell an average of 1,200 meals per week out of the new truck given her current event schedule. The average price per meal Micah charges is $15. What price would Micah charge for her meals if she wanted a 45% markup? A) $18.91 B) $14.99 C) $12.69 D) $18.52 E) $15.25

Micah's Food Service is adding another catering vehicle to her fleet that she will use for festivals, county fairs, and other events. The new food service truck will cost $150,000 equipped with all the food preparation appliances: Her variable costs per meal served will average $8 each. She expects to sell an average of 1,200 meals per week out of the new truck given her current event schedule. The average price per meal Micah charges is $15. What price would Micah charge for her meals if she wanted a 45% markup? A) $18.91 B) $14.99 C) $12.69 D) $18.52 E) $15.25

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Micah's Food Service is adding another catering vehicle to her fleet that she will use for festivals, county fairs, and other events. The new food service truck will cost $150,000 equipped with all the food preparation appliances: Her variable costs per meal served will average $8 each. She expects to sell an average of 1,200 meals per week out of the new truck given her current event schedule. The average price per meal Micah charges is $15. What price would Micah charge for her meals if she wanted a 45% markup? A) $18.91 B) $14.99 C) $12.69 D) $18.52 E) $15.25
Transcribed Image Text:Micah's Food Service is adding another catering vehicle to her fleet that she will use for festivals, county fairs, and other events. The new food service truck will cost $150,000 equipped with all the food preparation appliances: Her variable costs per meal served will average $8 each. She expects to sell an average of 1,200 meals per week out of the new truck given her current event schedule. The average price per meal Micah charges is $15. What price would Micah charge for her meals if she wanted a 45% markup? A) $18.91 B) $14.99 C) $12.69 D) $18.52 E) $15.25
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