According to the textbook, which of the following is not a common factor influencing menu

price?

a.

Guest type

b.

Ambience

c.

Weather

d.

Sales mix

2.

What is the goal of a sales approach to marketing?

a.

Maximizing sales volume

b.

Maximizing the item contribution margin

c.

Maintaining food cost percentage

d.

Maintaining the current competitive position

3.

What is the best definition of item contribution margin?

a.

The sum of the cost of a menu item and its selling price

b.

The difference between the selling price and food cost of a menu item

c.

A menu items food cost divided by its selling price

d.

A menu items selling price divided by its food cost

4.

Which of the following operational variables is not commonly used in menu analysis?

a.

Food cost percentage

b.

Popularity (sales mix)

c.

Selling price

d.

Marginal cost

5.

Using the food cost percentage method of menu analysis, which of the following squares is

the most desirable?

a.

Square 1 High food cost %, low popularity

b.

Square 2 High food cost %, high popularity

c.

Square 3 Low food cost %, low popularity

d.

Square 4 Low food cost %, high popularity

6.

Which of the following is a variable used in goal value analysis that is not used in matrix

analysis?

a.

Contribution margin

b.

Food cost percentage

c.

Popularity

d.

Variable cost percentage

For questions 7 12, use the following information from the first week in November taken from the operating and financial reports of Hudsons, a steak house owned by Jean Hudson: New York Strip Dinner selling price $20.00 New York Strip Dinner food cost $6.60 Number of New York Strip Dinners sold 95 Hudsons total cost of food sold $13,702 Hudsons total food sales $36,000 Hudsons total meals sold 1600 Hudsons total number of menu items 10 Hudsons desired food cost % 36% 7. Calculate Hudsons total revenue this week from the New York Strip Dinner. a. $ 490.00 b. $1,900.00 c. $2,800.00 d. $ 200.00 8. What is the current item contribution margin for the New York Strip Dinner? a. $ 7.20 b. $ 9.79 c. $10.25 d. $13.40 9. Jean is considering raising the price on the New York Strip Dinner to $22. If she does, how many will she have to sell to maintain the current revenue from this item? a. 23 b. 128 c. 87 d. 10 10. What is the actual food cost percentage for Hudsons for the week? a. 38.06% b. 42.00% c. 33.00% d. 30.05% 11. Calculate the average popularity (number sold) of the menu items at Hudsons. a. 160 b. 180 c. 23 d. 17 12. Compute the Overall Menu Goal Value for Hudsons, assuming a variable cost percentage of 28% and a desired average selling price of $18.00. a. 175.56 b. 290.30 c. 489.06

d. 663.55