Real-World Example 6.7
In a college town, a resturant owner who was in financial difficulty sought aid from
the SBA ‘www.sba.g) The first question asked by the SCORE (wWw.score.ora)
volunteer assigned as a consultant was: “What’s the most popular item on your menu?”
The owner replied, “Our $6.25 steak dinner.” The consultant asked for a scale and a
raw steak. He showed the restaurant owner that the raw steak alone cost $5.10.
Obviously, the reason for the steak dinner’s popularity was the markup of less than
23 percent on the cost of the steak alone. It was also the underlying cause of the
business’s financial troubles.