7. The present cost to Lil s Restaurant for one la carte steak is $3.20. This is 40 percent of the menu sales price. a. What is the present sales price? b. At an annual inflation rate of 5 percent, what is this steak likely to cost one year from today? c. Using the cost calculated in (b) above, what should the menu sales price be for this item in one year if the cost percent at that time is to be 38 percent? d. If you were a banquet manager planning a function six months from now and planning to use this item, what unit cost would you plan for? e. The banquet manager in (d) 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?

8. At the Loner Inn, total fixed costs for October were $28,422.80. In that month, 14,228 covers were served. a. What was the fixed cost per cover for October? b. Assume that fixed costs will increase by 2 percent in November. Determine fixed cost per cover if the number of covers decreases by 10 percent in November.