Sam Guild operates a dining room reserved for doctors in a large hospital in the Northeast. Sams boss has given Sam a target of 33 percent food cost but has indicated that the target might be adjusted. Currently, the doctors meals sell for $15.00. Sam knows he currently can spend $4.95 for the food required to produce each meal. Fill out the chart below to help Sam find out how much he will be able to spend on each meal at various food cost percentage levels if his boss adjusts his target.

Meal Selling Price	Food Cost %	Amount That Can Be Spent for Food
$15.00	18%
$15.00	25%
$15.00	30%
$15.00	33%	$4.95
$15.00	35%
$15.00	38%

How will the doctors meals likely be affected if the target cost percentage is reduced? What if it is increased?

Answer: