________ operates on the principle that food costs are not as important as total contribution margin.

Question

Quizplus · Accepted Answer

Menu engineering is a strategy that focuses on maximizing profits by analyzing the contribution margin of each menu item. This means that even if a menu item has a high food cost, it can still be profitable as long as its contribution margin (selling price minus variable cost) is also high. Therefore, in menu engineering, total contribution margin takes priority over food costs.

________ Operates on the Principle That Food Costs Are Not