Annual Planning at the Sporting Life Restaurant Estimates Nonfood Costs

Multiple Choice

Annual planning at the Sporting Life Restaurant estimates nonfood costs at $220,000, sets required profit at $17,200, and projects that 58,000 guests will be served during the upcoming year. What would be the average contribution margin required per guest during the upcoming year?

A) $3.50
B) $3.75
C) $4.09
D) cannot be determined