Q1 When using the food cost percentage matrix method of menu analysis, a menu item with which of the following characteristics would be most desirable?

	A.	High food cost %, low popularity
	B.	High food cost %, high popularity
	C.	Low food cost %, low popularity
	D.	Low food cost %, high popularity

Q2 As the level of personal service in a hospitality business increases, operations costs...

	A.	increase and selling prices must also increase.
	B.	increase and selling prices must be decreased.
	C.	decrease and selling prices must be increased.
	D.	decrease and selling prices must also be decreased.

Q3 A poor location may require that a food service operation...

	A.	increase its prices because its service levels will likely be high.
	B.	reduce its prices to attract a sufficient customer base.
	C.	increase its prices because its location will likely cause it to attract fewer customers.
	D.	reduce its prices because its ambiance will be below average.

Q4 What is another name for conducting menu analysis when using the contribution margin approach?

	A.	Menu engineering
	B.	Food cost analysis
	C.	Goal value analysis
	D.	Weighted average analysis

Q5 Which is the pricing factor a manager would use if they wanted to achieve a 40% food cost on all of their menu items?

	A.	2.5
	B.	3.0
	C.	3.5
	D.	4.0

Q6 Which is the most likely example of a food service guest who will NOT be price-sensitive?

	A.	An individual buying a hot dog while attending a professional sporting event
	B.	An office worker buying a hot dog for lunch
	C.	A college student buyign two chili dogs for dinner
	D.	A working mother buying five hot dogs to feed her family

Q7 What is the mathematical relationship between selling price, food cost %, and contribution margin?

	A.	Selling price / (1 - food cost %) = contribution margin
	B.	Selling price x (1.00 - food cost %) = contribution margin
	C.	Selling price / (1.00 + food cost %) = contribution margin
	D.	Selling price x (1.00 + food cost %) = contribution margin

Q8 A common and legitimate criticism of the contribution margin approach to menu analysis is that it favors...

	A.	lower priced menu items over higher priced items.
	B.	higher food cost percentage items over lower cost percentage items.
	C.	high priced menu items over lower priced items.
	D.	lower food cost percentage items over higher cost percentage items