1. In menu engineering, there are four names used to identify four classifications of menu items, they are:

A. Plowhorses, puzzles, dogs and winners

B. Plowhorses, puzzles, stars and losers

C. Plowhorses, puzzles, stars and dogs

D. Plowhorses, puzzles, stars and winners

2. Which of the following would not call for a tactical pricing decision?

A. Reacting to a competitors short run pricing changes

B. Adjusting prices to reach a new market segment

C. Establishing prices in conjunction with a companys five year financial objectives in mind

D. Knowing what discount to offer to accept group business while still making a profit

3. A hotels potential average room rate is the average rate that would result if:

A. All rooms sold were double occupied.

B. There were no unoccupied rooms

C. All rooms sold were discounted by only 10%.

D. All rooms occupied were sold at the rack rate without any discount.

4. The potential average room rate is defined as the average rate that would result if all rooms occupied overnight were sold at the rack rate without any discount.

A. True

B. False