Given the following information, what is the base selling price of the menu item using the prime costs pricing method? $\begin{array}{lr} \text { Menu Item Food Cost } & \$ 3,40 \\ \text { Annual Labor Cost } & \$ 200,000 \\ \text { Annual Number of Expected Guests } & 60,000 \\ \text { Desired Prime Costs Percentage } & 63 \% \end{array}$

A) $5.29 B) $5.40 C) $8.43 D) $10.68 A) $5.29 B) $5.40 C) $8.43 D) $10.68

Exam 3: The Menu: the Foundation for Control

A chicken dinner has a standard food cost of $3.50. If a 30 percent food cost is desired, what would be the base selling price using the ingredients markup method?

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Question 1

Correct Answer:

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Service has been slow at the Season's Restaurant. The manager has traced the problem to the flow of products from the storeroom to production areas. Which of the following control points is likely to be the focus of corrective action?

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Question 2

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The operating budget at the Home Style Restaurant sets food costs at $500,000, all nonfood costs at $750,000, and requires a profit of $95,000. Using the ratio pricing method, what would be the base selling price for a menu item with a standard food cost of $3.00?

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Question 3

Correct Answer:

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Given the following information, what is the base selling price of the menu item using the prime costs pricing method? Menu Item Food Cost \ 3,40 Annual Labor Cost \ 200,000 Annual Number of Expected Guests 60,000 Desired Prime Costs Percentage 63\%

(Multiple Choice)

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Question 4

The corporate management team of a theme restaurant chain recently evaluated the chain's menu items and identified several puzzlesitems that are high in contribution margin but low in popularity. Which of the following would be a reasonable strategy for the management team to adopt in relation to these items?

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Question 5

Which of the following is an example of an internal factor influencing decisions to change a menu?

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Question 6

The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing method?

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Question 7

Menu engineering classifies menu items that are low in popularity and low in contribution margin as:

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Question 8

Annual planning at the Sporting Life Restaurant estimates nonfood costs at $220,000, sets required profit at $17,200, and projects that 58,000 guests will be served during the upcoming year. What would be the average contribution margin required per guest during the upcoming year?

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Question 9

After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase the prices of several menu items, sell fewer of them, but increase overall revenues. The demand for these menu items would best be characterized as:

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Question 10

Showing 1 - 10 of 10

A chicken dinner has a standard food cost of $3.50. If a 30 percent food cost is desired, what would be the base selling price using the ingredients markup method?

Service has been slow at the Season's Restaurant. The manager has traced the problem to the flow of products from the storeroom to production areas. Which of the following control points is likely to be the focus of corrective action?

The operating budget at the Home Style Restaurant sets food costs at $500,000, all nonfood costs at $750,000, and requires a profit of $95,000. Using the ratio pricing method, what would be the base selling price for a menu item with a standard food cost of $3.00?

Given the following information, what is the base selling price of the menu item using the prime costs pricing method? Menu Item Food Cost \ 3,40 Annual Labor Cost \ 200,000 Annual Number of Expected Guests 60,000 Desired Prime Costs Percentage 63\%

Which of the following is an example of an internal factor influencing decisions to change a menu?

The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing method?

Menu engineering classifies menu items that are low in popularity and low in contribution margin as:

Annual planning at the Sporting Life Restaurant estimates nonfood costs at $220,000, sets required profit at $17,200, and projects that 58,000 guests will be served during the upcoming year. What would be the average contribution margin required per guest during the upcoming year?

After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase the prices of several menu items, sell fewer of them, but increase overall revenues. The demand for these menu items would best be characterized as:

The Challenge of Food and Beverage Operations

The Control Function

Operations Budgeting and Cost-Volume-Profit Analysis

Determining Food and Beverage Standards

Purchasing and Receiving Controls

Storing and Issuing Controls

Production and Serving Controls

Calculating Actual Food and Beverage Costs

Control: Analysis, Corrective Action,and Evaluation

Revenue Control

Preventing Revenue Theft

Labor Cost Control

Implementing Labor Cost Controls

Filters

Exam 3: The Menu: the Foundation for Control

A chicken dinner has a standard food cost of $3.50. If a 30 percent food cost is desired, what would be the base selling price using the ingredients mark­up method?

Service has been slow at the Season's Restaurant. The manager has traced the problem to the flow of products from the storeroom to production areas. Which of the following control points is likely to be the focus of corrective action?

The operating budget at the Home Style Restaurant sets food costs at $500,000, all nonfood costs at $750,000, and requires a profit of $95,000. Using the ratio pricing method, what would be the base selling price for a menu item with a standard food cost of $3.00?

Given the following information, what is the base selling price of the menu item using the prime costs pricing method? Menu Item Food Cost \ 3,40 Annual Labor Cost \ 200,000 Annual Number of Expected Guests 60,000 Desired Prime Costs Percentage 63\%

Which of the following is an example of an internal factor influencing decisions to change a menu?

The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing method?

Menu engineering classifies menu items that are low in popularity and low in contribution margin as:

Annual planning at the Sporting Life Restaurant estimates nonfood costs at $220,000, sets required profit at $17,200, and projects that 58,000 guests will be served during the upcoming year. What would be the average contribution margin required per guest during the upcoming year?

After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase the prices of several menu items, sell fewer of them, but increase overall revenues. The demand for these menu items would best be characterized as:

The Challenge of Food and Beverage Operations

The Control Function

Operations Budgeting and Cost-Volume-Profit Analysis

Determining Food and Beverage Standards

Purchasing and Receiving Controls

Storing and Issuing Controls

Production and Serving Controls

Calculating Actual Food and Beverage Costs

Control: Analysis, Corrective Action,and Evaluation

Revenue Control

Preventing Revenue Theft

Labor Cost Control

Implementing Labor Cost Controls

Filters

A chicken dinner has a standard food cost of $3.50. If a 30 percent food cost is desired, what would be the base selling price using the ingredients markup method?