Exam 10: Planning for Food Profit and Controls

If the total potential food cost for a menu item is $4.57, and the targeted food cost percentage is 30%, what is the targeted selling price?

actual food cost = = = 30% -Define profit.

Give examples of why actual food cost is different from potential cost.

Beef tenderloin has a yield percentage of 65.5. The original, as-purchased price is $6.69. What is the end-product price?

A food inventory taken at the Inn on January 1, 1998, totaled $3,500. During the month the business purchased $32,000 worth of food products. Prior to business operation on February 1, 1998, the Inn calculated a food inventory of $4,200. The Inn brought in $112,000 in food sales during the month of January. What is the cost of food sold for the month of January?

Give examples of food products that have a predictable and measurable amount of shrinkage or waste.

What is the formula for deriving unit cost?

If the selling price of an item is $12.95, and the potential food cost is $3.55, what is the potential food cost percentage?

First, consider your total sales amount as 100 percent. Next, subtract the percentages of your other business expenses, including labor, from that 100 percent. This leaves a percentage that must be divided between two areas: profit and food cost. Subtract the desired profit percentage from this number, and the remaining percentage will be the percentage you can spend on food. What is the end result?