GROUP 7



Menu:
Forecasted food sales (RM)
Non – Food expenses (RM)
Profit Requirement (RM)
Ingredient cost (RM)
A
450,000
200,000
20,000
 25
B
58,000
13,400
8,000
 4
C
18,000
9,000
1,500
 5
D
120,000
15,000
80,000
 12
E
30,000
20,000
3,000
 3
F
110,000
60,000
20,000
 20
G
55,000
20,000
10,000
10
H
60,000
13,000
25,000
12
I
40,000
10,000
9,500
3
J
80,000
50,000
20,000
12














For each of the menu item above, you are required to:
a)      Calculate the Allowable Food Cost
b)      Calculate the Budgeted food cost (%)
c)      Determine the Multiplier
d)      Calculate the Base selling price

 A) CALCULATE THE

ALLOWABLE FOOD COST


Menu A) = 450,000 – 200,000 – 20,000

                  = RM 230,000
Menu B) = 58,000 – 13, 400 – 8, 000
               = RM 36, 600
Menu C) = 18,000 – 9,000 – 1,500
               = RM 7, 500
Menu D) = 120,000 – 15,000 – 80,000
               = RM 25, 000
Menu E) = 30,000 – 20,000 – 3,000
               = RM 7,000
Menu F) = 110,000 – 60,000 – 20,000
               = RM 30,000
Menu G) = 55,000 – 20,000 – 10,000
               = RM 25,000
Menu H) = 60,000 – 13,000 – 25,000
               = RM 22,000
Menu I)  = 40,000 – 10,000 – 9,500
               = RM 20,500
Menu J) = 80,000 – 50,000 – 20,000
              = RM 10,000

B) CALCULATE THE BUDGETED FOOD COST (%)

Menu A = 230,000
                 450,000
              = 0.51 or 51%
Menu B = 36, 600
                  58 000
              = 0.62 or 62%
Menu C = 7 500
                18 000
              = 0.42 or 42%
Menu D = 25 000
                120 000
              = 0.21 or 21%
Menu E  = 7000
                 30 000
               = 0.23 or 23%
Menu F = 30 000
                110 000
              = 0.27 or 27%
Menu G = 25 000
                 55 000
              = 0.45 or 45%
Menu H = 25 000
                 60 000
              = 0.37 or 37%
Menu I = 20 500
               40 000
            = 0.51 or 51%
Menu J = 10 000
                 80 000
             = 0.13 or 13%

C) DETERMINE THE MULTIPLIER

Menu A = 1/desired food cost
              = 1/51
              = 0.0196 x 100
              = 1.96
Menu B = 1/desired food cost
              = 1/62
              = 0.0161 x 100
              = 1.61
Menu C = 1/desired food cost
              =1/42
              = 0.0238 x 100
              =2.38
Menu D = 1/ desired food cost
              = 1/21
              = 0.0476 x 100
              = 4.76
Menu E = 1/desired food cost
              = 1/23
              = 0.04347 x 100
              = 4.35
Menu F = 1/ desired food cost
              = 1/27
              = 0.0370 x 100
              = 3.70
Menu G = 1/ desired food cost
              = 1/45
              = 0.0222 x 100
              = 2.22

D) CALCULATE THE BASE SELLING PRICE

Menu A) Ingredients cost x multiplier
       = RM 25 x 1.96
       = RM 49
Menu B) Ingredients cost x multiplier
       = RM 4 x 1.62
       = RM 6.48
Menu C) Ingredients cost x multiplier
       = RM 5 x 2.38
       = RM 11.90
Menu D) Ingredients cost x multiplier
       = RM 12 x 4.76
       = RM 57.12
Menu E) Ingredients cost x multiplier
     = RM 3 x 4.35
     = RM 13.05
 Menu F) Ingredients cost x multiplier
     = RM 20 x 3.70
     = RM 74
Menu G ) Ingredients cost x multiplier
     = RM 10 x 2.22
     = RM 22.2
Menu H) Ingredients cost x multiplier
     = RM 12 x 2.70
     = RM 32.40
Menu I) Ingredients cost x multiplier
     = RM 3 x 1.96
     = RM 5.88
Menu J) Ingredients cost x multiplier
     = RM 12 x 7.69
     = RM 92.28
  




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