Question
1. David Berger is the F&B director at the private membership Fox Ridge Country Club. He is implementing a new dining room menu and has
1. David Berger is the F&B director at the private membership Fox Ridge Country Club. He is implementing a new dining room menu and has calculated menu prices for the six new entre items the menu will include. Review the worksheet below and then answer the questions that follow.
| Menu Item | Selling Price | Product Cost | Per Serving Labor Cost |
| New York Strip | $26.95 | $12.97 | $1.95 |
| 1/2 Duckling | $25.95 | $11.73 | $2.55 |
| Veal Chop | $31.95 | $13.85 | $1.95 |
| Roasted Free-Range Chicken | $18.95 | $6.53 | $2.55 |
| Pork Medallions | $24.95 | $5.58 | $3.10 |
| Portabella Mushroom Pasta | $18.95 | $3.85 | $4.25 |
A. Which of Davids items has:
The lowest food cost %? ____________
The highest food cost %? ____________
B. Which of Davids items have:
The lowest prime cost? ____________
The highest prime food cost ? ____________
C. Which of Davids items have:
The lowest contribution margin? ____________
The highest contribution margin? ____________
D. What would Davids overall food cost % be if each of the six items sold on the menu were equally popular?
E. How crucial do you believe Davids menu prices are to his potential diners frequency of visit? Explain your answer.
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An Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Roberts Brooks
7th Edition
0324321392, 9780324321395
