EATRIGHT PREP DOMAIN 3 QUESTIONS & ANSWERS
Which of the following marketing channel distributors does not take title to goods being
sold, yet receives a commission for negotiating between the buyer and seller?
A. Wholesaler
B. Broker
C. Manufacturer's representative
D. Special breed delegate
B. Broker; The broker is an independent sales representative who contracts to
represent certain manufacturers, processors, or prime source producers to sell and
market their products to foodservice operators and wholesalers. The broker does not
take title to goods being sold (he or she doesn't keep an inventory) and is paid on
commission.
Which of the following is the best example of a question to be solved by regression
analysis?
A. What is the staff procedure for using hazardous cleaning materials?
B. When are employees most likely to take vacation days?
C. How long should employee probation last?
D. Why was there a sales slump in July?
D. Why was there a sales slump in July?; Companies often use regression analysis to
understand and explain a phenomenon, predict what will happen in the future, or make
a decision on an action to take. A regression analysis may help a company understand
and explain why sales slumped in a specific time period.
Four entrees are on next Friday's menu: BBQ ribs, seafood platter, roast beef, and filet
mignon. The number of each item sold the last time this menu was offered was 76, 118,
96, and 154, respectively, for a total of 444 entrees sold. For the past five Fridays, the
following noon meal counts were recorded: 447, 423, 437, 444, and 429. For next
Friday, how many portions of roast beef will be forecasted?
A. 101
B. 98
C. 94
D. 95
D. 95; Step 1
Determine the average number of entrees sold over the past 5 weeks
447 + 423 + 437 + 444 + 429 = 2180
2180 total entrees/5 weeks = 436 entrees/week
Step 2
,Calculate the popularity index for roast beef based on the entrée count the last time the
menu was offered
96/444 = 21.6%
Step 3
Determine the amount of roast beef using the popularity index and the average number
of entrees over the past 5 weeks
.216 x 436 = 94.176
Step 4
The answer needs to be a whole number, and 94 is not enough portions, so round up to
95.
Using the factor pricing method, what would be the selling price for pasta primavera if
the recipe cost is $2.65 raw food cost/portion and the desired percentage of food cost is
34%?
A. 2.94
B. 3.55
C. 5.59
D. 7.79
D. 7.79; 100/Desired food cost % = cost factor 100/34 = 2.94 Raw food cost x cost
factor = markup $2.65 x 2.94 = $7.79
On Thursday, the kitchen produced a total of 386 meals. That day, staff worked a
combined total of 58 hours. What were the labor minutes per meal for that day?
A. 0.15
B. 6.66
C. 9.02
D. 15.02
C. 9.02; First convert the hours to minutes: 58 x 60 = 3,480 minutes. Then divide
minutes by total number of meals to calculate the labor minutes per meal. 3,480/386 =
9.02 minutes per meal.
Using the following figures, calculate the break-even point for a café: Fixed costs =
$52,000; variable costs = $85,000; total sales = $210,000.
A. $86,666.66
B. $113,333.33
C. $130,000.00
, D. $473,000.00
A. $86,666.66; Break-even point in sales = Fixed costs/[(Total sales - Variable costs)/
Total sales], 1. Determine contribution margin
$210,000- $85,000= $125,000
2. Determine contribution ratio
$125,000/$210,000=.595
Round this figure to .60
3. Determine break-even point
$52,000/.60=$86,666.66
What valuation method is being used when inventory is valued by assuming that newer
items are used before older items?
A. FIFO
B. LIFO
C. Latest purchase price
D. Weighted average
B. LIFO; LIFO (last in, first out) is based on the assumption that newer items are used
before older items, in other words, that current purchases are largely meeting current
production needs. FIFO (first in, first out) is based on using older items before newer
items.
A recipe requires 1¾ cup quick-cooking tapioca. Tapioca is purchased in twelve 8-oz
boxes in a case and costs $41.88 per case. Three cups of quick-cooking tapioca weighs
1 lb. What is the recipe cost for tapioca?
A. $2.33
B. $4.07
C. $5.24
D. $6.98
B. $4.07; One case of tapioca contains 12 8 oz boxes for a total of 6 lb (12 boxes x 0.5
lb = 6 lb). To calculate the price per pound, divide the total cost of the case $41.88 by 6
lb to get $6.98 per lb. Then the price per cup will be determined knowing that 3 cups of
tapioca weighs 1 lb. To get the price per cup, divide $6.98 by 3 cups to get $2.33 per
cup. Finally, to get the price for 1¾ cups, multiply $2.33 per cup by 1.75 to get $4.07.
What name is given to the purchasing document that is completed by the buyer and
given to the supplier?
A. FOB origin
B. Purchase requisition
C. Invoice
D. Purchase order