AHLEI Exam QUESTIONS WITH VERIFIED SOLUTIONS 100% PASS

AHLEI Exam QUESTIONS WITH VERIFIED SOLUTIONS 100% PASS Which of the following is an example of an internal factor influencing decisions to change a menu? a. consumer demand b. menu mix c. supply levels d. competition - ANSWER b. menu mix 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 mark-up method? a. $11.67 b. $12.60 c. $14.76 d. cannot be determined - ANSWER a. $11.67 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% a. $5.29 b. $5.40 c. $8.43 d. $10.68 - ANSWER d. $10.68 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? a. $4.92 b. $6.42 c. $11.33 d. $17.00 - ANSWER c. $11.33 Menu engineering classifies menu items that are low in popularity and low in contribution margin as: a. puzzles b. plowhorses c. stars d. dogs - ANSWER d. dogs When revenues are being projected, which of the following factors assumes that past trends are good predictors of future growth? a. revenue history b. unusual events such as roadwork or renovation c. competitive analysis d. expense history - ANSWER a. revenue history The first step in the process for budgeting for food and beverage operations is to: a. set profit requirements b. project revenues c. estimate expenses d. predict cash needs - ANSWER b. project revenues Costs that remain constant in the short term, even though sales volume may vary, are called _________ costs. a. variable b. mixed c. allocated d. fixed - ANSWER d. fixed Which of the following is most likely to be classified as a variable cost? a. general manager's salary b. rent expense c. property taxes d. food costs - ANSWER d. food costs At the Virtual Café, the average price per mean sold is $15 with an average variable cost of $7. Fixed costs for July are expected to be $30,000. If the restaurant manager expects to sell 5,000 meals in July, the next income (or loss) for the month would be: a. $25,000 net income b. $10,000 net income c. $0 (break even) d. $10,000 net loss - ANSWER b. $10,000 net income A formula for producing a food and beverage item is called a(n): a. product specification b. portion control percentage c. algorithm d. standard recipe - ANSWER d. standard recipe Which of the following standard cost control tools defines the net weight or volume of a food item after it has been processed according to established standard production procedures outlined in the standard recipe? a. standard yield b. standard recipe c. standard portion size d. standard portion cost - ANSWER a. standard yield To produce a desired yield of 20 pounds from a standard recipe with a standard yield of 5 pounds, the amount of each recipe ingredient used should be multiplied by: a. 5.0 b. 4.0 c. 0.4 d. 0.25 - ANSWER b. 4.0 If the AP price for a food item increased to $4.45 per pound and the cost factor for the item is 2.1, what is the new cost per servable pound? a. $2.13 b. $6.58 c. $9.35 d. $11.45 - ANSWER c. $9.35 If the standard portion cost for a menu item is $4.20 and 60 portions are prepared, what is the total ingredient cost? a. $125 b. $143 c. $225 d. $252 - ANSWER d. $252 A restaurant wastes $600 each month because of poor purchasing practices. If the operation's budget targets a profit of 15 percent of revenues, how much additional revenue must be generated by year's end to recoup the $600 of wasted resources each month? a. $4,000 b. $24,000 c. $48,000