Given the Following Information, What Is the Base Selling Price

Multiple Choice

Given the following information, what is the base selling price of the menu item using the prime costs pricing method? $\begin{array}{lr}\text { Menu Item Food Cost } & \$ 3,40 \\\text { Annual Labor Cost } & \$ 200,000 \\\text { Annual Number of Expected Guests } & 60,000 \\\text { Desired Prime Costs Percentage } & 63 \%\end{array}$

A) $5.29
B) $5.40
C) $8.43
D) $10.68