Chapter 10—Determining Cost Percentages and Pricing the Menu
TRUE/FALSE
1. One of the tools that is used to control the cost and use of food is the profit and loss
statement, the purpose of which is to show management the exact cost and amount of food
used on any given day.
2. A daily labor cost report should be generated each day for the manager’s review.
3. Bulk purchases are those foods that are usually purchased each day or every other day.
4. Total Sales = Average Sales ´ Customer Count
5. There is one thing a restaurant owner can and must do before setting the menu price of an
individual entree or sandwich—the price of the edible portion cost for each menu item must
be determined.
6. Markup is the money added to raw food cost to obtain the markup amount.
7. Raw food cost ´ markup rate = markup amount
8. When multiplying or dividing with percents, it is best to convert the percent to its decimal
equivalent. This is done by removing the percent sign (%) and moving the decimal point
two places to the right.
9. Menu or selling price = raw food cost + food cost percent.
10. The multiplier effect works on the principle of food cost percentage, but instead of dividing,
the restaurant owner multiplies the cost of the raw food by a number that corresponds to the
food cost percentage goal.
11. The three methods that can be used to price the menu—amount of markup using a percent,
labor cost percent, and multiplier effect—will all yield the same final menu price.
MULTIPLE CHOICE
1. _____ are defined as the total moneys needed to pay all the required employees to create,
make, and serve food to the guests.
a.
Direct purchases
b.
Labor costs
c.
Food costs
d.
Total sales
2. _____ is the cost of the food as it relates to the amount of dollars received in sales. _____ is
the cost of labor as it relates to the amount of dollars received in sales.
a.
Food cost percentage, Total revenue
b.
Labor cost percentage, Food cost percentage
c.
Total revenue, Labor cost percentage
d.
Food cost percentage, Labor cost percentage
3. One of the tools that is used to control the cost and use of food is the _____, the purpose of
which is to show management the exact cost and amount of food used on any given day.
a.
daily food cost report
b.
daily labor cost report
c.
profit and loss statement
d.
invoice
4. _____ are those foods that are usually purchased each day or every other day. They include
produce, dairy products, fresh seafood, bread, rolls, and any other items that are considered
perishable.
a.
Bulk purchases
b.
Customer counts
c.
Direct purchases
d.
Storeroom requisitions
5. To calculate the amount of average sales:
a.
Total Sales ÷ Customer Count = Amount of Average Sales
b.
Total Sales ´ Customer Count = Amount of Average Sales
c.
Amount of Average Sales = Total Sales – Customer Count
d.
Amount of Average Sales = Total Sales + Customer Count
6. Which of the following is not included on a daily food cost report?
a.
direct purchases
b.
rent
c.
total sales
d.
food cost percentage
7. The _____ is a detailed list of food served in a food service establishment.
a.
menu
b.
budget
c.
daily food cost report
d.
standardized recipe
8. Which of the following is not considered when establishing a menu price?
a.
customer count
b.
labor costs
c.
taxes
d.
equipment
9. Which of the following is not a method to price a menu?
a.
matching a competitor’s price
b.
amount of markup using a percent
c.
food cost percent
d.
multiplier effect
10. If the markup is figured by using percent, the menu or selling price of an item is determined
by _____.
a.
dividing the raw food cost by the percent, then multiplying the markup and the raw
food cost
b.
multiplying the raw food cost by the markup and adding the raw food cost
c.
dividing the raw food cost by the percent and adding the markup to the raw food
cost
d.
multiplying the raw food cost by the percent and adding the markup to the raw
food cost
NUMERIC RESPONSE
Determine the menu price for the following. Round to the nearest cent.
1. The raw food cost is $5.90, and the markup rate is .
$_______________
2. The raw food cost is $4.10, and the markup rate is 42%.
$_______________
3. The raw food cost is $3.47, and a 27% food cost is desired.
$_______________
4. The raw food cost is $5.75, and a 45% food cost is desired.
$_______________
5. What is the menu price using the multiplier of 5.3 if the raw food cost is $4.86?
$_______________
6. What is the menu price using the multiplier of 2.9 if the raw food cost is $6.06?
$_______________
7. The raw food price is $4.66, and the markup rate is 41%.
$_______________
8. The raw food price is $2.41, and the markup rate is 5/8.
$_______________
9. The raw food price is $3.63, and the markup rate is 70%.
$_______________
10. The raw food cost is $3.50, and a 32% food cost is desired.
$_______________
11. The raw food cost is $2.26, and a 22% food cost is desired.
$_______________
12. What is the menu price using the multiplier of 2.6 if the raw food cost is $2.25?
$_______________
Using the Chef’s Magic Circle, complete the following. Round percent answers to the
nearest hundredth and money answers to the nearest cent.
13. At Stages Restaurant, they calculated a total of $30,777 in food last month. They earned
revenue of $112,221. What was their food cost percentage for the month?
_______________%
14. In November, Rhonda’s Grill spent $5,175 for food with a 37.5% food cost percentage for
the month. What was their total sales for the month?
$_______________
15. In July, The Yellow Submarine Restaurant calculated a revenue of $59,970 with a 30.00%
food cost percentage for the month. What were their food costs for the month?
$_______________
16. Sales Price: $16.00
Food Cost: $4.90
Food Cost Percent: _______________%
17. Sales Price: $18,888
Food Cost: $11,300
Food Cost Percent: _______________%
18. Sales Price: $15.54
Food Cost Percent: 13%
Food Cost: $_______________
19. Sales Price: $1,908
Food Cost Percent: 33.5%
Food Cost: $_______________
20. Food Cost: $1.22
Food Cost Percent: 32%
Sales Price: $_______________
21. Food Cost: $2,632
Food Cost Percent: 31.1%
Sales Price: $_______________
Round percents to the nearest hundredth of a percent.
22. The total cost of all food purchased for the day is $2,810. The total sales is $4,055 for the
day. Find the daily food cost percentage.
_______________%
23. The daily sales are $4,750. Find the daily labor cost percentage if the Chef makes $1,140 a
week and works six days a week.
_______________%
COMPLETION
1. ____________________ ____________________ are the moneys spent to prepare any and
all products used in an individual recipe or an entire meal.
2. ____________________ ____________________ are defined as the total moneys needed to
pay all the required employees to create, make, and serve food to the guests.
3. ____________________ ____________________ ____________________ is the cost of
the food as it relates to the amount of dollars received in sales.
4. ____________________ ____________________ ____________________ is the cost of
labor as it relates to the amount of dollars received in sales.
5. One of the tools that is used to control the cost and use of food is the
____________________ ____________________ ____________________ report.
6. A(n) ____________________ ____________________ ____________________ report
should be generated each day for the manager to keep track of the daily cost of labor.
7. A(n) ____________________ ____________________ is a list of food items issued from
the storeroom upon the request of the production crew.
8. ____________________ ____________________ are those foods that are usually
purchased each day or every other day.
9. A list of goods sent to the purchaser with their prices and quantities listed is called a(n)
____________________.
10. The ____________________ is a detailed list of food served in a food service
establishment.
11. ____________________ is the money added to raw food cost to obtain a menu price.
12. When a restaurant owner multiplies the cost of the raw food by a number that corresponds to
the food cost percentage goal, the owner is using a system called the
____________________ ____________________.
MATCHING
Match the following chapter terms with their definition.
a.
daily food cost report
e.
food cost percentage
b.
storeroom requisition
f.
menu
c.
direct purchases
g.
markup
d.
customer count
h.
multiplier effect
1. Marked for sale at a higher price
2. A method used to obtain a menu price
3. A list of food items issued from the storeroom upon the request of the production crew
4. The cost of food as it relates to the amount of dollars received in sales
5. Those foods that are usually purchased each day or every other day
6. A list of the various dishes served at a meal
7. A tool to show management the exact cost and amount of food used on any given day
8. The total number of customers as sales are rung up
SHORT ANSWER
1. Fill in the table.
For the following daily food cost reports find:
• Total cost of food for today, to date, and last month to date.
• Total sales for today.
• Food cost percent today, to date, and last month to date.
Customer Count: 350
15 July 2010
Average Sale: $1.65
Monday
Issues
Today
To Date
Last Month
To Date
Storeroom
Canned Goods
$24.30
$106.55
$98.40
Other Groceries
$17.80
$40.50
$42.20
Meat
$47.25
$325.50
$312.30
Frozen Foods
$9.50
$25.22
$23.60
Direct Purchases
Poultry, fresh
$18.15
$75.45
$72.53
Seafood, fresh
$20.35
$52.60
$48.22
Produce
$10.56
$37.65
$34.25
Dairy Products
$6.90
$23.75
$19.85
Bread and Rolls
$5.85
$24.43
$23.46
Miscellaneous
$6.20
$12.24
$11.47
Total Cost
Total Sales
$1,750.00
$1,560.00
Food Cost Percent
Total cost = $166.86
$723.89
$686.28
Total sales = $577.50
Food cost percent = 28.9%
41.4%
44%