Find the cost per meal if you serve 120,000 meals, spend $46,000 in food purchases and $1,250 worth of food was removed from the inventory.

To determine the cost per meal, you need to calculate the total food cost and then divide that by the number of meals served.

First, start with the total food purchases, which is $46,000. Since $1,250 worth of food was removed from inventory, this means that this amount of food is not included as part of the cost for the meals served. Thus, you should subtract this from the total food purchases:

Total food cost = Total purchases - Food removed from inventory

Total food cost = $46,000 - $1,250

Total food cost = $44,750

Next, you can find the cost per meal by dividing the total food cost by the number of meals served:

Cost per meal = Total food cost / Number of meals served

Cost per meal = $44,750 / 120,000

Cost per meal = $0.3729

When rounded to two decimal places, this results in approximately $0.37. This confirms that the calculation points towards the correct option, which indicates the rationale behind reaching the answer effectively. Thus, the correct option reflects an accurate assessment of the cost per meal based on the given values.