The Owner of Snidley's Restaurant Has Developed a Simple Three-Item

Multiple Choice

The owner of Snidley's Restaurant has developed a simple three-item menu for use in her establishment. Each menu item represents a complete meal. She has determined standard cost for each listed item and has kept careful records for the month of October. Given the information below, calculate potential savings as a percentage of sales for the month.
Menu Item Number Sold Portion Cost Sales Price
A 400 $2.00 $5.00
B 500 $3.00 $8.00
C 600 $4.00 $10.00
Actual cost for the month was $5,100, and sales were $12,000.

A) 1.0%
B) 2.7%
C) 3.3%