Week 11

Mark‑up pricing occurs when the cost of food sold is marked up by a fixed percentage to obtain the selling price.

• True

• False

Net income cannot be considered a cost of running a business.

• True

• False

The dollar gross margin on a particular menu item is more important than that item’s food cost percent.

• True

• False

An average room rate is the rate charged at all times for each room in the hotel.

• True

• False

Size of room, decor, and view may be some of the factors to consider in establishing individual room rates.

• True

• False

Analysis of the room’s occupancy by day of the week can be useful in staff scheduling and advertising.

• True

• False

If, in a restaurant, food cost, labor cost, and other operating costs total 60%, and indirect costs including net income are $42,000, then sales revenue required to provide the desired net income will be:

• $70,000

• $252,000

• $105,000

• $168,000

Average room rate for a motel is $80.00. Occupancy is 60% percent. The motel has 80 rooms. Double occupancy rate is 50%. Spread between single and double rates is $5.00. Average single rate is:

• $70.00

• $77.50

• $93.32

• $73.32

Forecast annual motel room sales revenue is $642,400. The motel has 40 rooms and an 80% occupancy rate. What is the average room rate?

• $55.00

• $44.00

• $55.76

• $50.00