Question 1

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?

Accepted Answer

A)   $11.67
B)   $12.60
C)   $14.76
D)   cannot be determined A

Question 2

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?

Accepted Answer

A)   preparing
B)   serving
C)   issuing
D)   storing C

Question 3

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?

Accepted Answer

A)   $5.07
B)   $6.98
C)   $7.25
D)   $8.07 D

Question 4

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

Accepted Answer

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

Question 5

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?

Accepted Answer

A)   Decrease prices.
B)   Place the items in more visible locations on the menu.
C)   Shift demand to these items by using suggestive selling techniques.
D)   All of the above are reasonable strategies.

Question 6

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

Accepted Answer

A)   consumer demand
B)   menu mix
C)   supply levels
D)   competition

Question 7

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?

Accepted Answer

A)   $4.92
B)   $6.42
C)   $11.33
D)   $17.00

Question 8

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

Accepted Answer

A)   puzzles.
B)   plowhorses.
C)   stars.
D)   dogs.

Question 9

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?

Accepted Answer

A)   $3.50
B)   $3.75
C)   $4.09
D)   cannot be determined

Question 10

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:

Accepted Answer

A)   inelastic.
B)   high.
C)   elastic.
D)   low.

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?

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:

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?

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:

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?