FREE CMC Menu Planning and Costing Questions and Answers

Question 1

A Certified Master Chef analyzes a menu item and notes it has very high sales volume but a contribution margin lower than the menu's average.
According to menu engineering principles, how is this item classified and what is the most appropriate strategic action?

Accepted Answer

It is a Plow Horse; the recipe should be re-engineered to reduce its cost or its price slightly increased.

Answer

It is a Star; it should be featured prominently on the menu to maintain its high sales volume.

Answer

It is a Puzzle; the price should be lowered to increase its popularity.

Answer

It is a Dog; it should be removed from the menu immediately due to low profitability.

Question 2

When developing a new menu, a CMC wants to use a pricing method that accounts for both the cost of food and the direct labor involved in preparing each dish. Which of the following pricing methodologies should be used?

Accepted Answer

Prime Cost Method

Answer

Food Cost Percentage Method

Answer

Contribution Margin Method

Answer

Market-Driven Pricing Method

Question 3

A chef purchases a 20 lb case of whole artichokes for $50.00. After trimming the leaves and choke, the final yield of artichoke hearts is 25%. What is the Edible Portion (EP) cost per pound?

Accepted Answer

$10.00

Answer

$2.50

Answer

$12.50

Answer

$0.63

Question 4

When engineering a menu for maximum overall profit, why is focusing on an item's Contribution Margin (CM) often more effective than focusing solely on its Food Cost Percentage (FCP)?

Accepted Answer

Contribution Margin represents the actual dollar amount each sale contributes to covering fixed costs and profit.

Answer

A low Food Cost Percentage is the only metric that matters for a restaurant's financial health.

Answer

High Contribution Margin items always have the lowest food cost.

Answer

Food Cost Percentage directly calculates the menu's break-even point.

Question 5

A chef is tasked with determining the point at which the restaurant's total revenues equal its total costs, resulting in neither profit nor loss. What is this financial benchmark called?

Accepted Answer

Break-Even Point

Answer

Menu Mix Analysis

Answer

Prime Cost Assessment

Answer

Contribution Margin Ratio

Question 6

A CMC is designing a prix fixe menu and must choose one of two entrées. Entrée A sells for $50 with a $20 food cost. Entrée B sells for $42 with a $12 food cost. The restaurant's target food cost percentage is 35%. Which of the following statements is the most accurate for optimizing the menu's profitability per sale?

Accepted Answer

Entrée B is the better choice because it has a higher contribution margin.

Answer

Entrée A is the better choice because its food cost percentage (40%) is closer to the target.

Answer

Entrée B is the better choice because its food cost percentage (28.6%) is well below the target.

Answer

Both are equally good choices because their contribution margins are identical.

A Certified Master Chef analyzes a menu item and notes it has very high sales volume but a contribution margin lower than the menu's average.According to menu engineering principles, how is this item classified and what is the most appropriate strategic action?

A Certified Master Chef analyzes a menu item and notes it has very high sales volume but a contribution margin lower than the menu's average.
According to menu engineering principles, how is this item classified and what is the most appropriate strategic action?