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QUESTION
A restaurant is considering adding fresh brook trout to itsmenu.
A restaurant is considering adding fresh brook trout to itsmenu. Customers would have the choice of catching theirown trout from a simulated mountain stream or simply ask-ing the waiter to net the trout for them. Operating thestream would require $11,925 in fixed costs per year.Variable costs are estimated to be $6.80 per trout. The firmwants to break even if 900 trout dinners are sold per year.
What should be the price of the new item?
