Question: QUESTION 3 A cafeteria uses the prime cost method to price its food. The direct labor cost for the chicken entre is $1.56 and the
QUESTION 3
A cafeteria uses the prime cost method to price its food. The direct labor cost for the chicken entre is $1.56 and the food cost per portion is $1.12. If the cafeterias price factor is 3.1, what is the sales price for the chicken?
| A. | $11.18 | |
| B. | $8.31 | |
| C. | $10.18 | |
| D. | $8.88 |
QUESTION 4
A restaurant forecasts $700,000 in food sales for a year and wants to run a food cost percent of 32%. What should the budget for food cost in dollars be?
| A. | $476,000 | |
| B. | $700,000 | |
| C. | $24,000 | |
| D. | $224,000 |
QUESTION 5
A very basic restaurant does not provide employee meals, use transfers, or permit steward sales. What is its food cost for a month that has no promotions or write-offs if the months opening inventory is valued at $3,310, its closing inventory is $4,170, and its purchases for the month are $9,722?
| $10,882 | ||
| $8,862 | ||
| $8,628 | ||
| $8,268 |
QUESTION 6
Each month on average, a coffee shop makes $24,000 in gross profit and serves 12,000 customers. What should the shop charge for an item with a food cost of $1.47?
| A. | $5.47 | |
| B. | $2.99 | |
| C. | $3.47 | |
| D. | $4.37 |
QUESTION 7
Given a calculated sales price of $8.47, list three possible prices to list on the menu (one for a quick-service restaurant, one for a mid-level restaurant, and one for a high-end restaurant) that would make customers comfortable psychologically.
| A. | $8.49, $8.50, $9.00 | |
| B. | $12.50,$12.99, $15.99 | |
| C. | $3.49, $3.50, $4.00 | |
| D. | $8.47, $8.56, $9.01 |
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