Last Year an Operation Achieved a 35 Percent Food Cost

Multiple Choice

Last year an operation achieved a 35 percent food cost on sales of $800,000. For this year, the operation's manager anticipates a 5 percent increase in the prices the operation will pay for food. What should the manager estimate next year's food cost percentage to be if the operation does not raise its menu prices?

A) 36.00%
B) 36.75%
C) 40.00%
D) 40.75%