Equations For RD EXAM Questions And
Answers.
meals per labor hour -
\# meals produced / # hours worked
profit margin -
\net profit (profit after all expenses paid)/sales dollars (revenue)
Cost of sales -
\cost of the raw food + beverage sold
gross profit -
\sales-cost of sales (cost of food and beverages)
net profit -
\Gross Profit - Expenses
breakeven point in # of units sold -
\Fixed cost/ selling price-variable cost
Tells you how many meals you need to sell to break even
breakeven point in sales volume -
\fixed costs/ 1 -(variable cost/sales)
Factor-cost/mark-up/traditional mark-up pricing -
\1. Determine mark-up factor
100/food cost percentage
2. determine selling price
mark-up factor X raw food cost
-can add 10% to raw food cost to account for hidden cost
prime cost method -
\1. determine prime cost
raw food cost + labor cost
2.determine mark-up factor
100/food cost percentage+labor cost percentage
3. prime cost X mark-up factor
cost of profit pricing/cost plus pricing -
\1. add up all costs as percentages
2. Find desired food cost percentage
Answers.
meals per labor hour -
\# meals produced / # hours worked
profit margin -
\net profit (profit after all expenses paid)/sales dollars (revenue)
Cost of sales -
\cost of the raw food + beverage sold
gross profit -
\sales-cost of sales (cost of food and beverages)
net profit -
\Gross Profit - Expenses
breakeven point in # of units sold -
\Fixed cost/ selling price-variable cost
Tells you how many meals you need to sell to break even
breakeven point in sales volume -
\fixed costs/ 1 -(variable cost/sales)
Factor-cost/mark-up/traditional mark-up pricing -
\1. Determine mark-up factor
100/food cost percentage
2. determine selling price
mark-up factor X raw food cost
-can add 10% to raw food cost to account for hidden cost
prime cost method -
\1. determine prime cost
raw food cost + labor cost
2.determine mark-up factor
100/food cost percentage+labor cost percentage
3. prime cost X mark-up factor
cost of profit pricing/cost plus pricing -
\1. add up all costs as percentages
2. Find desired food cost percentage
