CEC Menu Planning and Costing 2

Question 1

A plate costs $4.20 to produce and the target food cost is 30%. Using the food cost percentage method, what is the menu price?

Accepted Answer

$14.00

Answer

Divide the plate cost by the target food cost percentage: $4.20 / 0.30 = $14.00.

Question 2

What pricing factor corresponds to a target food cost of 25%?

Accepted Answer

4.0

Answer

The pricing factor is 100 divided by the target percentage, so 100 / 25 = 4.

Question 3

Which costs together make up prime cost?

Accepted Answer

Food and beverage cost plus total labor cost

Answer

Prime cost is the cost of goods sold plus total labor cost, including payroll taxes and benefits.

Question 4

A steak sells for $32.00 and its plate cost is $11.50. What is its contribution margin?

Accepted Answer

$20.50

Answer

Contribution margin is selling price minus food cost: $32.00 − $11.50 = $20.50.

Question 5

In menu engineering, an item with high popularity but a low contribution margin is called a:

Accepted Answer

Plowhorse

Answer

Plowhorses sell well but bring in less profit per sale than the menu average.

CEC - Certified Executive Chef Practice Test