In todays fast-paced world, new laws and technologies come along that can change the way a business operates and its costs structure. Recently, Valley Farms restaurants costs went up because of a new higher minimum wage in their area. They decide to raise their average meal ticket price, from $1416, to cover the higher cost. Their variable costs are 60% of the selling price, and their fixed costs are $10,000 per month.

• Discuss the costvolumeprofit relationships restaurants should consider before raising their prices.
• Share some of the non-monetary factors to consider before raising a selling price.