1. In a sales approach to marketing, the goal is to maximize volume (number of covers sold). Increased customer counts should result in maximized total operational revenues. Explain and give three examples how this can be done in a restaurant.

2. The best methods used by restaurateurs to set prices consider an operations costs and profit goals when determining menu prices. Currently, what are the two most popular pricing systems and what are they based upon? What is the formula for computing food cost percentage for a restaurant?

3. What is the Hubbart Room Rate formula explain in detail, how is it calculated? Give two examples.

4. Explain in detail what is the difference between the Hubbart format and the Normal Concept Format?

5. Explain the $1.00 per $1,000 rule, how is it used to determine the (ADR). How is would this rule work in the Caribbean region in comparison to the United States?

6. Good managers seek to decrease their fixed costs to their lowest practical levels while still satisfying the needs of the business and its customers. Explain why and how this can be done without sacrificing guest satisfaction? Give 2-examples for hotels and 2- examples for restaurants.

7. Not all costs are the same. As a result, cost accountants have identified several useful ways to classify business costs. Among the most important of these are below:

Give example of each cost (Fixed, Variable, Mixed and Step cost) for a hotel and a restaurant

• Fixed and variable costs
• Mixed costs
• Step costs