Assignment 1:10%

Course Identification

Course title: HOTEL & RESORT FINANCE & REVENUE

MANAGEMENT
Course number: HAR-3084
Group:
Teacher’s name: Luigi Sicoli
Duration: 3 hrs or 90 minutes
Semester: Spring 2021

Student Identification

Name: Harinder singh sangha___________________Student number: _C0798891_____________

Date: _20-06-2021__________________ Result: ______________

Standard of the Evaluated Competencies

Statement of the evaluated competencies – Code(s)

To sell products and services in a commercial establishment (01U2)

Evaluated elements of the competency Relevant performance criteria specific to each element
Recognize key terminology for hotel 1.1 Define and provide examples of revenue support
operations along with processes and centres.
systems for management and control.
1.2 List and describe each aspect of the “operating control
cycle” and explain its importance to management.

Design food and beverage control systems 1.3 Present examples of common technology applications
to monitor and control inputs and outputs. and discuss technology as a support tool vs. Decision
making tool

1.4 Illustrate components of the basic management

system, and describe each aspect of the management
process
Instructions

 Class notes are allowed and students may not use any other materials.
 Students must remain silent during the exam.
 Please write clearly.

Mark Breakdown

This evaluation is worth 75 points, which are distributed as follows:

Questions and charts Total of75points

TOTAL: 75points

Good luck!
 Questions

Performance criteria evaluated:1) The presentation of Planning & Control for F&B
Operationsthat are applied in the correct context. 2) The correct attributes and components
applied to the questions. 3) Professional language skills and spelling. The elements here should
be the one found in the table above. 10% may be taken away for spelling and grammar
mistakes.

Totalweight:10 / 100

Totalpoints:/ 75

Instructions: Based on the questions you are about to read, answer each of the questions
found below and complete all grey areasin the chart.

Question 1(10 pts)

Product Selling Food Cost Contributio

Pizza Size Cost Price % n Margin
Small $3.60 $9.99 36.0% $6.39
Medium $4.60 $11.99 38.4% $7.39
Large $5.60 $13.99 40.0% $8.39
Extra large $6.60 $15.99 41.3% $9.39

What is the food cost percentage of Carlita’s small pizza? Which pizza size do you
think is Carlita’s most profitable? Why?
ANSWER- The food cost percentage for carlita’s small pizza is 36% and extra large
pizza is most profitable because it has the highest selling price, food cost% and
contribution margin.
Question 2 (10 pts)

Combo 1 Sellin NumberSol Item Cost Total Food Cost Total

g d Cost % Sales
Price
Hamburger $7.99 200       $1598
Combo Items            
Hamburger   200 $1.50 $300    
French fries   200 $0.38 $76    
(large)
Soft drink (16   200 $0.20 $40    
oz.)
Total     $2.08 $416 26.0%  
        Contribution $5.91%
margin per
sale

Combo 2 Sellin NumberSol Item Cost Total Food Cost Total

g d Cost % Sales
Price
Bacon $8.99 160       $1438.4
cheeseburger
Combo Items            
Bacon   160 $2.05 $328    
cheeseburger
Onion rings   160 $0.59 $94.40    
Soft drink (16   160 $0.20 $32    
oz.)
Total     $2.84 $454.40 31.6%  
        Contribution $6.15
margin per
sale

Combo 3 Sellin NumberSol Item Cost Total Food Cost Total

g d Cost % Sales
Price
Chicken $6.99 75       $524.25
 sandwich
Combo Items            
Chicken   75 $1.15 $86.25    
sandwich
French fries   75 $0.38 $28.50    
(large)
Soft drink (16   75 $0.20 $15    
oz.)
Total     $1.73 $126.75 24.7%  
        Contribution 5.26%
margin per
sale

Which combo meal has the lowest food cost percentage? Which combo meal generates the largest CM
per sale?
ANSWER- Combo 3 has the lowest food cost percentage. Combo 2 has the largest CM per sale.

Question 3 (10 pts)

Blazing Fast Subs

Guest count forecast 1,700 $ %
Revenue forecast   $13,500 100%
Breads $1,300   9.6%
Cheese $1,200   8.9%
Meats $1,755.00   13.0%
Produce $210   1.6%
Toppings and otherfoods $450   3.3%
Total cost of food   $4,915 26.0%
Assume Karis' revenue and cost forecast assumptions are correct. What will be her profit margin
Cost of labor
percentage?  
What will be her contribution margin per guest? $4,050 30.0%
ANSWER-$5.05
Other operating expenses   $3,375 25.0%
Profit Karis creates a new “Scottish” style  sub featuring Ruby
Assume $1,160 8.6% and that it costs
Red smoked salmon
her $3.90 to make
Contribution one. per
margin At what price should Karis sell the new “Scottish"- style sub?
guest
If karis sell the new Scottish style sub the price should be $4.58.
Question 4 (5pts)

Question 4 (10 pts )

Bess and David's Diner - Suburbs (Bess)    

Desired Product Cost Percentage: 40%  
Product Cost Percentage Method    

Desired Product
Menu Item Product Cost Cost Percentage Selling Price
Chicken BreastDinner $2.25 40% $5.63
Seafood Platter $3.45 40% $8.63
Steak Dinner $4.99 40% $12.48
Turkey Sandwich $1.25 40% $3.13
Pork Chop $2.45 40% $6.13
Hamburger $1.50 40% $3.75
Cheeseburger $1.75 40% $4.38
Fries $0.45 40% $1.13
MeatLoaf $1.25 40% $3.13
Small Drink $0.35 40% $0.88

Use the ROUND function for “Pricing Factor” column to threedecimal places.

Bess and David's Diner - Inner City (David)    

Desired Product Cost Percentage: 42%  
Factor Method      

Menu Item Product Cost Pricing Factor Selling Price

Chicken BreastDinner $2.25 2.381 $5.36
Seafood Platter $3.45 2.381 $8.21
Steak Dinner $4.99 2.381 $11.88
Turkey Sandwich $1.25 2.381 $2.98
Pork Chop $2.45 2.381 $5.83
Hamburger $1.50 2.381 $3.57
Cheeseburger $1.75 2.381 $4.17
 Fries $0.45 2.381 $1.07
MeatLoaf $1.25 2.381 $2.98
Small Drink $0.35 2.381 $0.83

Question 5 (5 pts)

Contribution Margins:
Salads: $1.30
Entrées: $4.25
Desserts: $1.75
Drinks: $1.10

Contribution MarginApproach

Desired
Product Contribution
Menu Item Cost Margin Selling Price
Salads
Dinnersalad $0.30 $1.30 $1.60
Macaroni salad $0.55 $1.30 $1.85
Potato salad $0.65 $1.30 $1.95
Carrot and raisin
salad $0.40 $1.30 $1.70
Bavariansalad $0.60 $1.30 $1.90
       
Entrées
Liver and onions $2.50 $4.25 $6.75
Steak patty $2.75 $4.25 $7.00
Meatloaf $2.85 $4.25 $7.10
Chicken fried steak $2.10 $4.25 $6.35
Fried catfish $2.35 $4.25 $6.60
Chicken casserole $2.25 $4.25 $6.50
Turkey and dressing $2.55 $4.25 $6.80
       
Desserts      
Chocolatecream pie $0.75 $1.75 $2.50
Coconutcream pie $0.75 $1.75 $2.50
Pecan pie $1.25 $1.75 $3.00
Chocolate cake $0.60 $1.75 $2.35
 Pudding $0.20 $1.75 $1.95
Jell-O $0.20 $1.75 $1.95
Carrot cake $0.70 $1.75 $2.45
       
Drinks      
Coffee $0.15 $1.10 $1.25
Tea $0.15 $1.10 $1.25
Soft drink $0.25 $1.10 $1.35

Question 6 (10 pts)

Value Meal and Beverage

Numbe Sellin Foo
r Item Total g Total d Cost
Menu Item Sold Cost Cost Price Sales %
Stir-frydish 75 $0.65 $48.75 $1.00 $75.00 65.0%
Beverage 60 $0.20 $12.00 $1.00 $60.00 20.0%
Total 135   $60.75   $135.00 45.0%

Based on the information given, calculate the overall product cost percentage of the value
meals and beverages. Would you advise Ming to “go for it”? Why or why not?
ANSWER- She should not go for it because her overall product cost percentage would be
45%. This would be 10% than her target 35%.

Number of Beverages to Achieve Target Overall Product Cost Percentage

Numbe Sellin Foo
r Item Total g Total d Cost
Menu Item Sold Cost Cost Price Sales %
Stir-frydish 75 $0.65 $48.75 $1.00 $75.00 65.0%
Beverage 150 $0.20 $30.00 $1.00 $150.00 20.0%
Total 225   $78.75   $225.00 35.0%

How many beverages must be sold in addition to the value meals if Ming is to achieve her target
food cost percentage goal? Is this number feasible?
ANSWER- Mind would have to sell 150 beverages in order to reach the food cost percentage that
she wanted. This number is not feasible.
Question 7
(20 points)

Cost
Weddin Number of Beer WineC Spirit Total per
g Date GuestsServed Cost ost Cost Cost Guest
$1,10
June 07 250 $700 $600 0 $2,400 $9.60
$1,80 $12.5
June 14 325 $850 $1,425 0 $4,075 4
$2,25
June 21 400 $525 $1,000 0 $3,775 $9.44
$2,07 $5,15 $10,25 $10.5
Total 975 5 $3,025 0 0 1

a. What do you think should be Jackson’s “best estimate” of the cost to the Club of providing a
4-hour hosted bar at weddings?
ANSWER- $10.51 per person.

b. If Jackson seeks to ensure a 20 percent beverage cost, what should be his selling price, per
guest, for a 4-hour hosted bar?
ANSWER- Selling price should be $ 52.56
c. Would you recommend Jackson charge half of the amount in the answer in part b for a 2-
hour hosted bar? Explain your answer.
ANSWER- No, I would not recommend Jackson charge half of the amount because it will
affect his profit.