TOUR 310 FINAL EXAM QUESTIONS AND
ANSWERS LATEST UPDATE
Loss leader
a menu item that is priced very low, sometimes even below total costs, for the purpose
of drawing large numbers of guests to the operation.
A restaurant has a check average of $12 and has variable costs per cover of
$4.80. If its fixed costs are $36,000 for the month, the number of covers that must
be sold to reach the monthly break-even point is:
5,000 covers
Which of the following statements regarding goal value analysis is correct?
As the goal value for an item increases, so does its profitability percentage.
b. The computed goal value is a numerical target. It is not a percent or dollar figure.
c. Goal Value = A x B x C x D (A = 1 - food cost %), (B = item popularity), (C= selling
price) and
D = 1 - (variable cost % + food cost %)
Calculate the goal value for the following Italian pasta plate: food cost % 35%,
number sold 150, selling price $12.50, variable cost % 30%.
426.56
Given the following information, calculate the desired before-tax profit: tax rate
25%, desired after-tax profit $12,000, contribution margin % 50%.
$60,000
Given the following information, calculate the sales dollars needed to achieve the
desired after-tax profit of $12,000: tax rate 40%, fixed costs $30,000, variable cost
% 50%.
c. $100,000
Which of the following items do you need to have available to develop a budget?
a. Prior period operating results
b. Assumptions of next period operations
, c. Goals
d. Monitoring policies
Items that do not achieve the targeted goal value tend to be deficient in one or
more key areas. What are these key areas?
a. Food cost percentage
b. Popularity
c. Selling price and/or variable cost percentage
When the contribution margin matrix is used and the menu item has a low
contribution margin and high popularity, which of the following may be part of the
marketing strategy?
b. Reduce prominence on the menu.
How do you calculate the break-even point in sales?
a. Fixed costs / contribution margin %
The matrix analysis:
a. Allows menu items to be placed into categories based on whether they are above or
below menu item averages.
c.Analyzes food cost % and contribution margin.
Which of the following software programs can help a manager plan for profit?
a. Budget profit levels
b. Conduct menu matrix analysis
c. Perform budgeted cash flow analysis
Calculate the goal value for the following chicken parmesan plate: food cost %
40%, number sold 250, selling price $11.95, variable cost % 25%. a. 435.98
d. 627.38
A criticism of using the food cost percentage method of menu analysis is that
items that have a lower food cost percentage may be sacrificed in favor of higher
per item profits.
b. False
If an item on the food cost matrix has a low food cost % and high popularity
management should not waste money or time marketing it; the item obviously
sells itself.
ANSWERS LATEST UPDATE
Loss leader
a menu item that is priced very low, sometimes even below total costs, for the purpose
of drawing large numbers of guests to the operation.
A restaurant has a check average of $12 and has variable costs per cover of
$4.80. If its fixed costs are $36,000 for the month, the number of covers that must
be sold to reach the monthly break-even point is:
5,000 covers
Which of the following statements regarding goal value analysis is correct?
As the goal value for an item increases, so does its profitability percentage.
b. The computed goal value is a numerical target. It is not a percent or dollar figure.
c. Goal Value = A x B x C x D (A = 1 - food cost %), (B = item popularity), (C= selling
price) and
D = 1 - (variable cost % + food cost %)
Calculate the goal value for the following Italian pasta plate: food cost % 35%,
number sold 150, selling price $12.50, variable cost % 30%.
426.56
Given the following information, calculate the desired before-tax profit: tax rate
25%, desired after-tax profit $12,000, contribution margin % 50%.
$60,000
Given the following information, calculate the sales dollars needed to achieve the
desired after-tax profit of $12,000: tax rate 40%, fixed costs $30,000, variable cost
% 50%.
c. $100,000
Which of the following items do you need to have available to develop a budget?
a. Prior period operating results
b. Assumptions of next period operations
, c. Goals
d. Monitoring policies
Items that do not achieve the targeted goal value tend to be deficient in one or
more key areas. What are these key areas?
a. Food cost percentage
b. Popularity
c. Selling price and/or variable cost percentage
When the contribution margin matrix is used and the menu item has a low
contribution margin and high popularity, which of the following may be part of the
marketing strategy?
b. Reduce prominence on the menu.
How do you calculate the break-even point in sales?
a. Fixed costs / contribution margin %
The matrix analysis:
a. Allows menu items to be placed into categories based on whether they are above or
below menu item averages.
c.Analyzes food cost % and contribution margin.
Which of the following software programs can help a manager plan for profit?
a. Budget profit levels
b. Conduct menu matrix analysis
c. Perform budgeted cash flow analysis
Calculate the goal value for the following chicken parmesan plate: food cost %
40%, number sold 250, selling price $11.95, variable cost % 25%. a. 435.98
d. 627.38
A criticism of using the food cost percentage method of menu analysis is that
items that have a lower food cost percentage may be sacrificed in favor of higher
per item profits.
b. False
If an item on the food cost matrix has a low food cost % and high popularity
management should not waste money or time marketing it; the item obviously
sells itself.
