Free CMC Menu Planning and Costing Questions and Answers 1

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

In menu engineering, an item with high popularity (sales volume) but low profitability (contribution margin) is classified as a 'Plow Horse.' The goal is to improve its profitability without significantly reducing its popularity. Strategic options include carefully re-engineering the recipe with lower-cost ingredients, slightly reducing the portion size while enhancing plate presentation, or implementing a small price increase.

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

The Prime Cost Method is a comprehensive pricing strategy that calculates a menu item's price based on its 'prime cost,' which is the sum of the raw food cost and the direct labor cost. This method provides a more accurate picture of an item's true cost to produce than methods that only consider food cost.

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

First, calculate the As-Purchased (AP) cost per pound: $50.00 / 20 lbs = $2.50/lb. The Edible Portion (EP) cost per pound is found by dividing the AP cost per pound by the yield percentage. EP Cost = $2.50 / 0.25 = $10.00 per pound.

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

While Food Cost Percentage is a useful ratio for cost control, the Contribution Margin (Selling Price - Food Cost) shows the actual cash generated by each sale. An item with a higher FCP (e.g., a steak) might contribute significantly more dollars to profit than an item with a very low FCP (e.g., a side of pasta). Prioritizing high CM items helps maximize the total dollars available to cover labor, rent, and other fixed costs, ultimately driving higher profit.

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

The break-even point is the level of sales at which total revenues equal total costs (both fixed and variable), meaning the business has not made a profit but has not incurred a loss. It is a crucial calculation for understanding the sales volume needed to become profitable.

(CMC) Certified Master Chef Practice Test

(CMC) Certified Master Chef Practice Test

Free CMC Menu Planning and Costing Questions and Answers 1