Chapter 2 Forecasting and Budgeting Review your Learning

Which of the following is a labor cost forecasting method?

• Sales forecast

• Labor hours per day

• Percentage of sales

• Break-even point

Which of the following is a long-term budget?

• Monthly labor budget

• Weekly food cost budget

• Operating budget

• Monthly marketing budget

Generally, what is the highest expense in restaurant and foodservice operations?

• Prime Cost

• Beverage cost

• Linen cost

• Wage cost

Calculate the average check per customer if an operation has weekly sales of $9,300 and a weekly customer count of 258.

• $25.80

• $35.75

• $27.74

• $36.05

At a local bistro, total fixed costs for June were $176,432. In that month, 8,652 covers were served. What was the fixed cost per cover for June?

• $17.64

• $20.39

• $23.90

• $26.38

How much is the prime cost for PanPan Noodle House?

• $300,000

• $400,000

• $650,000

• $750,000

If the Other costs category increases by 40%, how much would profits for PanPan Noodle House be, assuming that all other items do not change?

• $60,000

• $70,000

• $80,000

• $140,000

If the desired profit is 15%, what is the ideal total expense?

• $100,000

• $120,000

• $680,000

• $700,000

If revenues are expected to increase by 3% and total expenses by 2.5%, what is the budgeted profit for next year?

• $75,500

• $97,500

• $103,000

• $106,500

If the budget for food and beverage costs drops to $280,000 and the budget for total revenue remains at $800,000, what is the new food and beverage cost as percentage of sales?

• 32%

• 35%

• 37%

• 39%