Final Exam Review

Management Foodservice
Systems
Topics Covered on Final
Exam
 Types of budgets  Labor cost
 Sections in budget  Prime cost
 Kitchen design  Time requirement
principles calculations
 Balance sheet items  FTE calculations
 Productivity standards,  AP, AS, EP
calculation
calculations
 RFC—what does it  Food cost
represent
percentage
Topics—continued
 Break-even analysis  Calculation of
 Food cost/patient kitchen/dining area
day  Meat purchasing
 Meal equivalents  Acid test
 Purchasing using
PF/PD formula
 Dining room
turnover
Calculation of Productivity
Standards
 How many sandwiches can be made
per minute by 2 sandwich preps if 1 ½
hours are allotted to make 450
sandwiches?
Solution
 1.5 hours x 60 minutes/hour = 90
minutes x 2 sandwich prep employees =
180 minutes.
 450 sandwiches = 2.5 sandwiches/
180 minutes minute
Calculate the revenue
generated by the following:
Menu Item Selling RFC # Sold
Price
Baked $10.99 $2.58 43
Chicken
Spaghetti
and $12.99 $1.75 68
Meatballs
Fish and $9.99 $3.80 29
Chips
Revenue

Amount of income generated by a

sale.
Baked Chicken
 Selling Price: $10.99
 RFC -$2.58
________

$8.41
$8.41 x 43 sold = $361.63 in revenue
Spaghetti and Meatballs
 Selling Price: $12.99
 RFC - $1.75
_________
$11.24

$11.24 x 68 sold = $764.32 in revenue

Fish and Chips
 Selling Price: $9.99
 RFC -$3.80
______
$6.19

$6.19 x 29 sold = $179.51

Prime Cost
 Calculatethe labor cost/serving of beef
marsala if RFC is $2.25, prime cost is
$3.50 and selling price is $7.00.
Prime Cost

Percent of each dollar of revenue

used for the cost of food + labor
Labor Cost/serving
 Prime Cost of beef marsala-- $3.50
 RFC -$2.25
 Labor Cost/serving $1.25

 What is the food cost %?

Food Cost %
 $2.25 = 32%
$7.00

If 500 servings of beef marsala were sold,

what would the profit be?
Profit
 2.25x 500 = $1125 RFC for 500 serv.
 $7.00 x 500 = $3500 revenue
 $1.25 x 500 = $625 labor cost

 $3500 – ($1125 + 625) = $1750 gross

profit
How much time should be
allowed to complete a task?

Time = A + 4M + B
6
How much time is needed for 2 maintenance persons to mop all
floors in the department, if a rushed job takes 2 ½ hours, a very
thorough job takes 4 ¾ hours and an average job takes 3 ¼ hours?

2.5 + 4(3.25) + 4.75 = 3 hours 23 min

6
How many FTEs are used in a week in a facility that
produces 1800 meals/day and uses 5.5 minutes/meal.

 1 FTE = 40 hours/week
 1800 meals/day x 7 days/week = 12600
meals

12600 meals x 5.5 minutes/meal = 69300

minutes
69300 minutes/60 minutes/hour = 1155 hours
1155 hours/40 hours/FTE = 28.875 FTE
Roast Beef is $6.99/# AP

EP is 9 oz, AS is 4 oz.
How many servings/#?

9 oz. EP/4 oz AS = 2.25

servings/# AP
What is EP cost/#?

$6.99/9 oz./# = $0.78/oz.

$0.78 x 16 oz./# = $12.48
What is EP cost/serving?

4 oz./serving x $0.78/oz =
$3.12/serving
What is % yield?

9/16 = 0.5625 x 100 = 56.25%

What revenue would support a
30% food cost % objective?

$6.99/2.25 servings/# = $3.10

RFC
3.10/30% = $10.33
If sales are $50,000 and fixed and variable costs are
$12,500 and $45000 respectively, what is the break-
even point?

 Break even point = fixed costs

1 – variable costs
sales

$12,500/1 – ($45,000/$50,000) =
$12,500/0.1 = $125,000
What is food cost/patient day
in a 200 bed hospital …

Revenue = $45250/week
Food Cost % = 35%
Calculate Gross Food Cost
 Revenue = $45250
 35% = $15837.50
Calculate food cost/patient
day
 Gross food cost/patient day

 $15837.50/7(200)
 $15837.50/1400 = $11.31/patient day
If 200 meals are served and
25% of customers choose fish
 How many servings of fish are sold?
 200 servings x 25% = 50 servings
 Serving size is 3 oz. EP
 If the yield of fish is 80%
 What is PF for fish?
 16/3 = 5.33
What is PD?
 PF x yield = PD
 5.33 x .80 = 4.269

 How much fish is needed to serve the

50 portions?
 50/4.269 = 11 pounds 11 ounces
If 4 cafeteria line customers are served/minute,
how many seats are required in the dining
area?

 Assume 60 minutes in lunch hour

 60 minutes x 4 served/minute = 240
diners/hour

 If
it takes 20 minutes to eat:
 Dining TO = 60 minutes/20
minutes/diner = 3
240/3 = 80
 80 seats, minimum
 Need to know standard vacancy (20%)
 80 seats + 16 = 96 seats
 Need to know standard self-bussing
vacancy (10%)
 96 seats + 10 = 106 seats
If 15 ft2/seat is required
 How large is the dining room?
 106 seats x 15 ft2/seat = 1590 sq. ft.
 How large is the production area?
 (need to know 60/40, dining/production)
 1590/1060
 Total area of foodservice = 2650 sq.ft.