Exam 11: Menu Engineering and Analysis

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Contribution margin in menu engineering is calculated by subtracting sales price from item cost.

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In menu engineering a "DOG" should always be removed from the menu.

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In menu engineering, low sales volume is one of the characteristics of a menu item called a Puzzle.

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According to the principles of menu engineering, a menu item determined to be a plowhorse should be:

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Plowhorses have low sales and high contribution margins.

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In menu engineering a contribution margin that is lower than the average contribution margin would be classified with the letter "L".

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One of the possible actions to take when a menu item is considered a plowhorse is to:

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According to the principles of menu engineering, a menu item determined to be a star should be:

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One of the possible actions to take when a menu item is considered a puzzle is to:

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According to the principles of menu engineering, a menu item determined to be a puzzle should be:

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In menu engineering all items on the menu including appetizers and entrees are placed on one worksheet and treated together.

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In menu engineering, a menu item for which both contribution margin and sales volume are relatively high is called a:

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In menu engineering, a menu item for which contribution margin is relatively high while sales volume is relatively low is called a:

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One of the possible actions to take when a menu item is considered a "dog" is to:

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In menu engineering the menu mix percentage column represents popularity index for those items

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Average contribution margin is calculated by dividing the total contribution margin by the number sold.

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In menu engineering, a menu item for which both contribution margin and sales volume are relatively low is called a:

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In menu engineering, a menu item for which contribution margin is relatively low while sales volume is relatively high is called a:

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A "Puzzle" is an item that can sometimes be repositioned on the menu to make it a star.

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"Stars" are items with high sales volume but relatively low contribution margins.

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