Restautant Management Equations
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Determine Contribution Margin.
Total Sales - Variable Costs = Contribution Margin
Sales = Expenses.
Volume - Cost = Profit
Determine Variable Rate (VR)
Variable Costs / Sales = Variable Rate
Determine minimum recipe cost.
Recipe Cost / Food Cost = Minimum menu price.
Determine Unit Cost.
Case Cost / Units = Unit Cost.
The Butcher Test.
- Total Cost - Useable Waste Value
- Ounces of Useable Product
Portion Size (Cost per useable ounce) = Portion Cost
Sales = Variable Costs + Fixed Costs + Profit
- Quantity = Number of portions x Portion size (in decimal form)
- Yield Percentage
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