1. Total annual restaurant sales revenue is $754,000. Lunch turnover is 2.25 and there are 60 seats. Lunch is served 5 days a week and is 30% of total annual sales revenue. Lunch average check will be:

A. $4.55

B. $7.95

C. $5.45

D. $6.44

2. The loss of sales revenue from a guest room on a given day is more serious than loss of sales revenue from a restaurant customer on a given day because:

A. Room rates are always higher than average checks in a restaurant

B. The labor cost is higher in the rooms department

C. Food cost is only a fraction of restaurant sales revenue

D. The lost room sales revenue cannot be recovered at some future time

3. Net income cannot be considered a cost of running a business.

A. True

B. False

4. If seat turnover increases and average check increases, total sales revenue will decrease.

A. True

B. False