Chapter 1: Introduction

Chapter 1 Problems

1.Fixed costs total $5,000.00. What are the fixed costs per customer for the following numbers of guests?

a.1,000 customers: ______

b.2,000 customers: ______

c.5,000 customers: ______

What do these numbers mean to you?

2.What are the following costs per customer if food cost is $500, labor cost is $250, and other operation costs are $100. There are 100 customers. Sales are $2,000.

a.Average food cost (AFC): ______

b.Average labor cost (ALC): ______

c.Total average cost (TAC): ______

d.Average sales (AS): ______

3.60 entrees were sold in a given hour. What is the sales mix if the following entrees were sold?

a.steaks: 20 ______

b.seafood: 19 ______

c.poultry: 15 ______

d.vegetarian: 6 ______

4.If food costs are $500, labor costs are $200, and sales are $1,500, calculate the following:

a.Food cost percentage (CF%) = ______

b.Labor cost percentage (LC %) = ______

5.Fill in the blank cells in the following table:

Number of Customers / Sales / Food
Cost / Food
Cost
% / Beverage
Cost / Beverage
Cost% / Labor
Cost / Labor
Cost% / Average
Sales/
Person
200 / $1,000 / $______/ 20 / $______/ 10 / $______/ 40 / $______
750 / $2,000 / $______/ 20 / $______/ 20 / $______/ 40 / $______
1,000 / $3,000 / $______/ 35 / $______/ 30 / $______/ 20 / $______
2,000 / $4,000 / $______/ 40 / $______/ 40 / $______/ 20 / $______
200 / $______/ $300 / ______/ $200 / ______/ $200 / ______/ $5.00
750 / $______/ $2,000 / ______/ $1,000 / ______/ $1,000 / ______/ $6.00
1,000 / $______/ $2,000 / ______/ $1,000 / ______/ $2,000 / ______/ $7.00
2,000 / $______/ $6,000 / ______/ $1,000 / ______/ $2,000 / ______/ $8.00

6.Maria manages a restaurant that has weekly sales of $15,000. Her fixed labor costs are $3,200 and the food cost percentage is 30%. Determine:

a.Labor cost percentage (LC %): ______

b.The amount spent on food (CF): ______

7.In problem 6, if Maria had 3,000 customers and she expects 5,000 this year, what will be the following if the average check remains at $5 per customer? Labor cost % remains the same.

a.Labor cost (LC): ______

b.Food cost (CF): ______

c.Food cost percentage (CF %): ______

8.Fill in the following considering that fixed costs are $5,000 per month and the average check is $5.

Total sales / Number of customers / Fixed cost per customer
$______/ 1,000 / $______
$______/ 2,000 / $______
$______/ 3,000 / $______
$______/ 4,000 / $______

9.Knowing your basic formulas, complete the following if P = purchases, OI = openinginventory, EI = ending inventory, CF = food cost, and CF % = food cost percentage

A.OI = $100CF = ______

P = $200

EI = $50

Sales = $1,000CF % = ______

B.OI - $2,000CF = ______

P - $800

EI = $1,800

Sales = $3,000CF % = ______

C.Purchases:

Meat = $300

Dairy = $100

Baking = $100

Produce = $100

Opening Inventory = $10,500

Ending Inventory = $9,900

Sales: = $3,600

a.What are the total purchases? ______

b.What is the CF? ______

c.What is the CF %? ______

10.Fixed costs and variable costs.

a. Consider the following: (Fill in the blanks.)

Brian’s RestaurantTina’s Restaurant

Revenue / $1,000,000 / ■■■■■■ / $1,000,000 / ■■■■■■
Variable Costs / $500,000 / 50% / $300,000 / 30%
Fixed Costs / $400,000 / 40% / $600,000 / 60%
Total Costs / $______/ ■■■■■■ / $______/ ■■■■■■
Profit / $______/ _____% / $______/ _____%

Which would be the best restaurant if you owned both? Why?

b. What if you decided that you could increase sales by 20% for both restaurants (fill in the chart below)?

New Chart:

Brian’s RestaurantTina’s Restaurant

Revenue / $______/ ■■■■■■ / $______/ ■■■■■■
Variable Costs / $______/ 50% / $______/ 30%
Fixed Costs / $400,000 / _____% / $600,000 / _____%
Total Costs / $______/ ■■■■■■ / $______/ ■■■■■■
Profit / $______/ _____% / $______/ _____%

What restaurant would now be the best? Why did this happen?

Chapter 1 Discussion Questions

1.What makes for good service in any restaurant?

2.Describe what you see as quality service in a(n)

a.fast food restaurant:

b.family restaurant:

c.upscale restaurant:

3.Describe the importance of, and what each consists of, in order to make a profit in:

a.planning:

b.organizing:

c.directing:

d.controlling:

4.Describe when and how month end adjustments and items stored in the kitchen (i.e., spices) could be figured in the inventory and the food cost.

Chapter 2: An Overview of Cost Control

Chapter 2 Problems

1.What are the three main expenditures for a restaurant?

2.What is the formula for cost of food (CF)?

3.If the purchases were $1,000, opening inventory was $500, and ending inventory was $400, what was the CF?

CF= ______

4.Referring to problem 3 above, if we transferred food out that consisted of the following:

--to the bar $50 of prepared food (cost of labor not included)

--$50 of uncooked food

--to the banquet kitchen $100 of uncooked food

and we transferred food into our kitchen from another kitchen of $200, what is the new cost of food?

CF= ______

5.In problem 3, if employees ate meals menu priced at $100 and the food cost percentage is 30%, what is the new CF?

CF= ______

6.Continuing with these answers from problems 4 and 5, if we gave 10 desserts away that are sold for $5 each, what is the new CF?

CF= ______

7.What is the food cost percentage (CF %) formula?

8.What is the food cost percentage if

a.CF = $1,500 and sales = $3,000

CF%= ______

b.CF = $700 and sales = $2,100

CF%= ______

c.Purchases (P) = $600 and Opening Inventory (OI) = $100, Ending Inventory (EI) = $200 and sales - $3,000

CF= ______CF%= ______

d.Sales - $6,650, purchases = $2,000, OI = $1,500, and EI = $2,000

CF= ______CF%= ______

9.If sales are expected to be $7,500 and you estimate that you will have a 25% food cost and a 10% beverage cost, what will be your estimated food and beverage costs in dollar amounts if beverages are 50% of sales?

BC = ______CF= ______

10.In problem 9, if your labor percentage is 20% of sales, what is the labor cost in dollars?

LC= ______

11.In problem 9, what would be operating costs be if they run 16% of sales?

Operating Costs = ______

12.If you have an average check of $10 and you have 80 seats and the turnover of seats is 3 times per day, how much sales would you expect?

Sales = ______

13.In problem 12, if you are open 6 days a week, what would your sales be per week?

Sales = ______

14.If it took a cook, paid $10 per hour, one hour to make lasagna and the ingredients cost $47.50, would it be more cost efficient to buy pre-made lasagna, if it cost $56.00 for the same number of servings?

a.What would you do if the level of quality became an issue with your customers?

15.Given purchases:

Meat $500

Dairy 200

Produce 100

Bakery 100

Canned 300

OI is $1,800

CI is $1,600

If you had 200 customers that had a check average of $24, find:

a.CF= ______

b.CF %= ______

16.Purchases are $500, OI is $1,200, and the CI is $1,300. Lunch has an average check of $3 per person and 100 guests. In the evening the check average is $5 and the number of guests is 300. Find:

a.Total sales = ______

b.CF = ______

c.CF% = ______

d.Profit= ______

17.OI = $100, P = $200, and CI = $50. Sales = $600. What are the CF and CF%?

CF= ______CF%= ______

18.Purchases are as follows: meat $300, dairy $100, baking $100, produce $200, OI = $10,500, and CI - $9,900. Sales are $3,800. Find the cost of food and the CF%.

CF= ______CF%= ______

Chapter 2 Discussion Questions

1.What are some common accepted quality standards for:

a.fast food restaurants:

b.family restaurants:

c.fine-dining restaurants:

2.What is the role of training in cost control?

3.How would you forecast the amount of sales and expenses you would have for any given day?

4.What factors are involved in determining the quality of food products you buy and serve your guests?

5.Can you buy a product that exceeds the quality your guests expect? Give an example.

6.Give examples and name the benefits of outsourcing.

7.What is a cost benefit analysis?

8.Why would you outsource an entire restaurant in your hotel?

9.Define scratch cooking.

10.Define standards of operation.

11.Name two ways to detect and decrease theft.

12.Why do you need to know your cost of food%?

13.If the cost of food compared to sales is not what you desire it to be, what could be the problem(s)?

Chapter 3: Controlling Costsand

Improving Revenue Controls with Technology

Chapter 3 Discussion Questions

1.How do you see technology changing restaurants in the next five years in the following areas?

a.purchasing:

b.receiving:

c.food preparation:

d.inventory control:

e.service to the customer:

f.revenue-producing methods:

g.accounting:

h.forecasting:

i.food safety:

j.equipment:

k.hotel services:

l.nutrition:

2.Why is technology important for our future in the food industry?

3.If the manager of a restaurant is receiving complaints about the amount of time it takes to process an order, how could technology help?

4.If the wrong food is delivered to your restaurant, how might technology help?

5.Might a modern “cash register” help you in cost management?

Chapter 4: Cost-Volume-Profit Relationships

Chapter 4 Problems

1.Define these acronyms and terms, and show the formula for each:

a.S – sales:

b.VC = variable costs:

c.FC = fixed costs:

d.P = profit:

e.CR = contribution rate:

f.VR = variable rate:

g.CM = contribution margin:

2.From problem 1, if S = VC + CM and CM = FC + P, what are S, CM, and P?

S = ______

CM = ______

P = ______

3.If P = S – VC – FC, find:

FC = ______

VC = ______

S = ______

4.If sales = $1,000 and VC = $500, what is the CM?

CM = ______

5.If VC - $1,100 and CM = 500, what are the sales?

S = ______

6.If sales = $3,000, VC = $1,000, and FC = $1,000, what is your profit?

Profit = ______

7.If profit = $500, sales = $3,800, and your fixed costs = $900, what is your VC?

VC = ______

8.If profit = $3,000, VC = $8,000, and FC = $18,000, what are your sales?

S = ______

9.If VC/S = VR and CM/S – CR, then if sales of entrees was $8,000, the CM was $6,000, and the variable costs were $2,000, complete for

a.VR = ______

b.CR = ______

10. If FC = $10,000, VC = $4,000, and you had $1,000 profit, what was the CM?

(First state the formula used.)

CM(formula) = ______

CM = ______

  1. In problem 10, if your sales were $25,000, what was the CR? (First state the formula used.)

CR(formula) = ______

CR = ______

12.If CR + VR = 1, give the formula for

a.CR = ______

b.VR = ______

13.If VC = $5,000, FC = $3,000, and P=$2,000, complete the formulas for

a.S = ______

b.CM = ______

c.CR = ______

d.VR = ______

14.What is the VR if VC = $10,000 and your sales for today are $15,000?

(First state the formulas used.)

VR(formula) = ______

VR = ______

15.Using the formula:

S (sales) =

a.Find the sales if FC = $8,000, P = $1,000, and CR = 68%.

S = ______

b.What would your profit be if sales = $15,000, FC = $6,000, and CR = .61?

Profit = ______

16.Complete the table. (AC = Average check; AVC = Average Variable Cost)

Sales in Units (People) / AC / AVC / FC / P
______/ $14 / $4 / $1,000 / 0
______/ $19 / $4 / $1,800 / 0
______/ $11 / $3 / $6,000 / $3,000
______/ $17 / $6 / $18,000 / 0
______/ $16 / $8 / $23,000 / 0
______/ $14 / $7 / $29,000 / $1,000
______/ $14 / $6 / $168,000 / 0
______/ $14 / $3 / $293,000 / 0

Where Sales in Units =

Chapter 4 Discussion Questions

Define the following terms in your own words.

1.Variable cost (VC):

2.Contribution margin (CM):

3.Contribution rate (CR):

4.Variable rate (VR):

5.If your VR is too high, what are your options? What are the possible ramifications?

Chapter 5: Controls in Food Purchasing

Chapter 5 Problems

1.Name the steps in deciding what you need to buy.

2.What are the three standards of purchasing?

3.Define:

a.Product specification:

b.Purchase specification:

c.Periodic order method:

d.Minimum par level:

e.Perpetual ordering method:

f.Safety stock:

g.Perpetual inventory method:

h.Physical inventory method:

4.If we need 150 lbs. of hamburger on Friday and we have 100 lbs. on hand Thursday, how much do we need to order?

______lbs.

5.If we need 150 lbs. of hamburger but we have 50 lbs. on hand and we will use 30 lbs. before the next delivery, how much do we need to order?

______lbs.

  1. Fill in this chart:

A / B / C / D / E
Product / Amount Needed / Amount on Hand / Safety % / Amount Used Before Delivery / Amount to Order
Pasta / 300 lbs. / 30 lbs. / 10% / 10 lbs.
Fresh tomatoes / 6 boxes / 1 box / 0% / ½ box
10 oz. Rib eye steaks / 200 / 30 / 10% / 20
Ice cream / 20 gal. / 2 gal. / 0% / 1 gal.
6 oz. Salmon filets / 60 pieces / 30 pieces / 5% / 0 pieces

Amount to Order (Formula) = ______

Define:

a.open bid:

b.Steward’s Market Quotation sheet:

c.sealed bid:

d.cost plus:

e.co-op buying:

f.one stop shopping:

g.contract:

h.warehouse:

i.standing order:

j.centralized purchasing:

k.online purchasing:

l.edible portion(EP):

m.as purchased (AP):

n.yield percent (Y%):

8.If , complete the following:

Product / EP / AP / Y%
Beef, ground / 20 lbs. / ______lbs. / 75%
Lettuce / ______lbs. / 100 lbs. / 65%
Tomatoes / 50 lbs. / ______lbs. / 97%
Steaks / ______lbs. / 100 lbs. / 90%
Pork chops / 4 oz. / 5 oz. / ______%

9.If EP(costs) = AP(costs) / Y, where Y = yield; complete the following:

EP cost / AP cost / Y
$ ______/ $12.00 / 50%
$ ______/ $128.00 / 75%
$ ______/ $22.50 / 68%
$16.00 / $8.00 / ______%
$100.00 / $ ______/ 70%
$228.00 / $ ______/ 70%
  1. If you need 200 (8 oz.) filets for Friday business, 100 for Saturday, and 50 for Sunday, how many pounds do you need to buy for each yield?

Y(total) = ______lbs.

a. Y% = 80%; Y = ______lbs.

b. Y% = 85%; Y = ______lbs.

c. Y% = 90%; Y = ______lbs.

11.If in problem 10, for a, b, and c, the price for a pre-cut filet is $10 per steak, and the price for the filets described above is $8 per pound, should you buy the pre-cut, or a, b, or c?

Chapter 5 Discussion Questions

1.What are the reasons for doing a physical inventory?

2.How do you select a vendor?

3.How do you determine if you should buy a product in AP or EP form?

4.Describe the difference in purchasing perishables and non-perishables.

5.How could the physical design and organization of a storeroom affect profits?

6.Describe a possible method of conducting a physical inventory.

7.What information goes on an inventory form?

Chapter 6: Controls in Food Receiving, Storage, and Issuing

Chapter 6 Problems

1.State the three receiving standards.

2.Fill in the blanks.

a.Quality standards are what was ordered and called ______.

b.Quantity standards are the ______ordered, and what was

______.

c.Cost standards include the ______.

d.The ______sheet lists all products delivered.

e.______is the correct acronym for proper storage to ensure that old products are used first.

f.Beef should be stored at ______°F.

g.A ______form is used by departments before taking products out of storage.

h.______products should be stored together.

3.a.Directs and ______are a way of classifying delivered products for physical and accounting purposes.

b.Another way of classifying products is by ______and nonperishables.

4.A physical inventory should be done at least ______.

5.What is most important when doing a physical inventory?

a.That one is exact

b.That one is consistent

6.Many restaurants (not fast food) run a food inventory turnover of _____-_____times per year; liquor turns over about _____-______times a year.

a.What is the turnover per week? ______-______

b.Per month? ______-______

7.Calculate the following:

OI / CI / Purchased / AI / IT
$12,000 / $12,000 / $15,000 / ______/ ______
$16,500 / $17,000 / $31,000 / ______/ ______
$22,000 / $23,000 / $45,000 / ______/ ______
$6,000 / $5,000 / $18,000 / ______/ ______
$12,380 / $6,380 / $23,000 / ______/ ______
$31,000 / $31,200 / $103,000 / ______/ ______
%15,000 / $14,000 / $93,000 / ______/ ______

AI (formula): ______

CF (formula): ______

IT (formula): ______

1

8.Fill in the chart for valuation of an inventory.

Product / Unit / Jan. 1
Amt / Jan. 1
Price / Jan. 12
Amt / Jan. 12
Price / Jan 15
Amt / Jan 15
Price / Jan. 30
Amt / Jan 30
Price / OI / CI / LIFO / FIFO / Average
Price / Last
Price
a) lettuce / Lbs. / 55 / $0.50 / 10 / $0.55 / 10 / $0.50 / 20 / $0.60 / 25 / 30 / $____ / $____ / $____ / $____
b) tomatoes / Each / 60 / $1.00 / 50 / $1.00 / 50 / $1.20 / 120 / $1.00 / 50 / 50 / $____ / $____ / $____ / $____
c) cheese / Lbs. / 10 / $2.00 / 10 / $2.00 / 10 / $2.50 / 20 / $2.50 / 70 / 40 / $____ / $____ / $____ / $____
d) taco shells / Each / 100 / $0.10 / 100 / $0.10 / 100 / $0.15 / 200 / $0.15 / 80 / 100 / $____ / $____ / $____ / $____
e) hamburger / Lbs. / 50 / $2.00 / 50 / $2.50 / 50 / $2.00 / 50 / $2.00 / 50 / 40 / $____ / $____ / $____ / $____
f) seasoning / Can / 1 / $1.00 / 1 / $0.75 / 2 / $1.00 / 0 / $0.75 / 1 / 3 / $____ / $____ / $____ / $____

1

9.On September 30 of last year the inventory at your restaurant was $700. During October you purchased $7,000 in food. At the end of October, your inventory was $900. Sales for the month were $16,000.

a.What was the food cost for October? CF = ______

b.If the cost of the meals given to employees was $300 for the month of October what would be your food cost percentage? CF% = ______

c.What is your opening inventory for November 1? OI = ______

d.What are the AI and the IT?

AI = ______

IT = ______

10.Mr. Smith is the owner-operator of Dodge Street Café. The café has fallen on hard times and Mr. Smith wants to keep his taxable income as low as possible for the present period. Mr. Smith has called you in as a consultant. He wants you to compare the methods of FIFO and LIFO and the sample information he gathered from his invoices for the month of January. Use this information to show Mr. Smith his best course of action in how he values (counts) his tomato inventory. (To pay low taxes, he would want a low inventory.)

Ending Inventory, 1/31, 19 cans

Canned Tomato Purchases:

LIFOFIFO

1/1 12 cans @$1.10 =$______$______

1/15 6 cans @ 1.20 =$______$______

1/2212 cans @ 1.30 =$______$______

1/296 cans @ 1.50 =$______$______

Totals:$______$______

State your recommendation and explain your reasoning.

Chapter 6 Discussion Questions

1.Define perishable and nonperishable foods.

2.What is the importance of establishing quality standards?

3.What information is, or could be, valuable on a receiving report?

4.Who should conduct the physical inventory? Why?

Chapter 7: Controls in Food Production

Chapter 7 Problems

1.How do you determine how much food to prepare on a production schedule?

  1. Complete the following chart for steak production:

1

Steaks / % of sales / Mon. / Tues. / Wed. / Thurs. / Fri. / Sat. / Sun. / Total
Per week
Filets
8 oz. / 21 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Filets
10 oz. / 12 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Rib Eye
10 oz. / 18 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Rib Eye
19 oz. / 6 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Strip Steak 18 oz. / 21 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Round Steak 18 oz. / 3 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Chicken Fried Steak 6 oz. / 12 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
T-Bone Steak 22 oz. / 4 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
T-Bone Steak 12 oz. / 3 / ____ / ____ / ____ / ____ / ____ / ____ / ____ / ____
Forecast / ■■■■ / 300 / 300 / 350 / 400 / 500 / 600 / 700 / ______

3.Find the cost of each ingredient separately. Total the cost of all ingredients to get the total recipe cost. Divide the total cost by the number of portions to find the per-portion cost.

Menu item: Meat Loaf

Yield: 50 portions

Ingredients / Quantity / Price / Unit Cost / Ingredient Cost
Ground beef / 12 lbs. / $2.10 per lb. / ___/lb. / $ ______
Slightly beaten egg / 5 / $0.84 per dozen / ___/egg / $ ______
Minced onion / 2 ozs. / $0.37 per lb. / ___/oz. / $ ______
Salt / 2 oz. / $0.16 per lb / ___/oz. / $ ______
Pepper / 1 oz. / $2.56 per lb / ___/oz. / $ ______
Beef stock / 1 gal. / $0.60 per gal. / ___/gal. / $ ______
Bread crumbs / 1 lb. / $0.30 per lb. / ___/lb. / $ ______

TOTAL RECIPE COST = $ ______

PER-PORTION COST = $ ______

4.Give reasons to cut your own meat and reasons not to cut your own meat.

5.If you fabricate your own cuts of pork, and you do not use all of the parts, the value of the un-used parts is ______.

6.Which is the best buy if you lose 20% shrinkage in cutting and trimming the loin into pork chops?

  • Center Cut Pork Chops: $3.02/lb.
  • Pork loin: $2.15 / lb.

7.If you buy hamburger so that AP = 10 lbs. and AP(cost) = $2.00/lb. and you end up with the following:

6.5 lbs. EP (edible portion)

2.0 lbs. fat

1.5 lbs. shrinkage

a.What is the % of usable product? EP = ______lbs.

b.What is the true cost of the EP? EP(cost) = $______

c.What is the ratio of fat to total weight? ______%

d.What is the ratio of fat to EP? ______%

8.Fill in the blanks: (Note: Labor cost per hour was factored at $6.25/hr.)

Description / Cost
Per
Case / Weight
Per Case
(lbs.) / Waste
Per
Case (lbs.) / Usable
Lettuce
Per Case (lbs.) / Processing
Cost of
Labor / Total
Cost / Price
Per lb.
of EP
Head
Lettuce / $15.35 / 50 ¾ / 23 ¾ / ______/ $2.35 / $17.70 / $______
Trimmed
Lettuce / $14.35 / 28 ¾ / 4 ½ / ______/ $0.95 / $15.30 / $______
Cleaned and Cored
Lettuce / $15.10 / 26 ½ / 0 / ______/ $0.78 / $15.88 / $______
Pre-cut
Salad Mix / $9.85 / 20 / 0 / ______/ $0.00 / $9.85 / $______

a.Which lettuce is the best buy considering all the above? ______

b.What else could be considered along with the price? ______

9.Fill in the blanks: (Note: Time to process carrots was not considered here.)

Carrots / AP Wt.
(lbs.) / Price/lb. / EP (lbs.) / Yield%
Amount / Effective Price/
lb. of EP Carrot
Type A / 100 / $.06 / 75 / ______% / $______/lb.
Type B / 100 / $.08 / 80 / ______% / $______/lb.
Type C / 30 / $.10 / 30 / ______% / $______/lb.

a.Which carrot type would be the best to buy? ______

b.What else could be considered in buying carrots from the above choices?

10.If a roast loses these percentages of its weight in cooking, slicing and fat removal, which is the best buy? What else would you consider?

Size of Roast / 18 lbs. / 20 lbs. / 22 lbs. / 25 lbs.
% of Loss: / ■ / ■ / ■ / ■
16% / _____EP lbs. / _____EP lbs. / ■ / ■
18% / ■ / ■ / _____EP lbs. / ■
22% / ■ / ■ / ■ / _____EP lbs.
Price per Pound / $2.12 / $2.00 / $1.95 / $1.92
Total Price AP / $______/ $______/ $______/ $______
Price EP per lb. / $______/ $______/ $______/ $______

11.If selling price where CI = Cost of item, DFC% = Desired food cost percentage; calculate the following:

Amount
Of Item / Item Ingredient / Cost / SP if DFC % = 25% / SP if DFC% = 30%
8 ozs. / Soup / $0.21 / $ ______/ $ ______
6 ozs. / Chicken ala Metro / $1.10 / $ ______/ $ ______
4 ozs. / Salad / $0.62 / $ ______/ $ ______
3 ozs. / Vegetable / $0.40 / $ ______/ $ ______
3 ozs. / Rice Pilaf / $0.18 / $ ______/ $ ______

Recalculate using the following portions:

Amount
Of Item / Item Ingredient / New
Cost / SP if DFC % = 25% / SP if DFC% = 30%
6 ozs. / Soup / $ ______/ $ ______/ $ ______
4 ozs. / Chicken ala Metro / $ ______/ $ ______/ $ ______
6 ozs. / Salad / $ ______/ $ ______/ $ ______
4 ozs. / Vegetable / $ ______/ $ ______/ $ ______
6 ozs. / Rice Pilaf / $ ______/ $ ______/ $ ______

12.Complete the following if CF = Cost of Food and CF % = Cost of Food Percentage

Sales / Purchased
(used that day) / Storeroom
Usage (that day) / In / Out / Employee
Meal (cost of food) / CF
Today / CF
Today
% / This
Week
To Date
Cost / This
Week to Date
CF%
Day
1 / $500 / $200 / $10 / $15 / $20 / $20 / a / b / c / d
Day
2 / $350 / $100 / $0 / $10 / $10 / $20 / e / f / g / h
Day 3 / $600 / $300 / $0 / $0 / $0 / $20 / i / j / k / l
Show for each value of: / FORMULA USED
a. $
b.
c. $
d.
e. $
f.
g. $
h.
i. $
j.
k. $
l.

13.You need to purchase turkey for your holiday buffet. You can buy the whole turkey for $.72/lb. or the boneless, skinless, fully cooked turkey (BSFCT) for $1.20/lb. The byproduct for whole turkey has little value to your restaurant. Either product has the same satisfaction with your guests. Complete the cells on this chart to determine the best buy.

Purchased
Weight / Unusable
Product / Purchased
Price/lb. / Ratio to
Total Weight / EP Price/lb. / Total Cost
Turkey
Whole / 24 lbs. / ■ / $.72 / ■ / ■ / $17.28
Bones / fat / ■ / 4 lbs. / ■ / ______% / ■ / ■
Cooking loss / ■ / 7 lbs. / ■ / ______% / ■ / ■
EP turkey / ■ / _____ lbs. / ■ / ______% / $______/ $______
■ / ■ / ■ / ■ / ■ / ■
■ / ■ / ■ / ■ / ■ / ■
BSFCT / ■ / ■ / ■ / ■ / ■ / ■
EP turkey / 16 lbs. / 0 lbs. / $1.20 / ■ / $______/ $______

(NOTE: Labor costs are not considered here.)

Which is the best to buy, the whole turkey or the BSFCT turkey?

14.You need to cut rib eye steaks from a NAMP 112, boneless, lip off, rib eye. You purchase 12 lbs. average pieces of rib eye. You usually end up with 10% shrinkage or trim in fat and other waste. You have, usually, 3% of the meat that consists of miscuts and trim, which is then ground into hamburger. Hamburger has a value of $1.45 per pound. The whole, NAMP 112, rib eyes cost $5.40 per pound, while precut steaks cost $6.56. Which should you buy?