Restautant Management Equations

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1. Determine Contribution Margin.
Total Sales - Variable Costs = Contribution Margin
2. Determine Breakeven.
Sales = Expenses.

OR

Volume - Cost = Profit
3. Determine Variable Rate (VR)
Variable Costs / Sales = Variable Rate
4. Determine minimum recipe cost.
Recipe Cost / Food Cost = Minimum menu price.
5. Determine Unit Cost.
Case Cost / Units = Unit Cost.
6. The Butcher Test.
• Total Cost - Useable Waste Value
• ____________________________
•     Ounces of Useable Product
7. Portion Cost.
Portion Size (Cost per useable ounce) = Portion Cost
8. Determine Sales
Sales = Variable Costs + Fixed Costs + Profit
9. Yield Percentage.
• Quantity = Number of portions x Portion size (in decimal form)
• ______________________________
•              Yield Percentage
 Author: Fmarie ID: 205026 Card Set: Restautant Management Equations Updated: 2013-03-05 05:22:47 Tags: Costing Equations Restaurant Management Folders: Description: Equations to cost out restaurant expenses. Show Answers: