The Grand Restaurant has monthly fixed costs of $60,000, contribution margin ratio (CMR) of 40%. Its owners equity is $360,000, and its desired ROI is at least 10%. Use this information for questions 16 and 17.

16. Based on the above information: what is the monthly revenue when the restaurant achieves its desired profit?

a. $150,000

b. $162,500

c. $160,000

d. $165,000

17. Based on the above information and the additional information: seats available 200, Seat Turnover 2, Days Open: 26, what should the average food service price per cover be?

a. $16.0

b. $31.3

c. $15.0

d. $12.5