What should the potential food cost (in percentage) at the Inn have been given the following sales mix? Potential
Item Number Sold Selling Price Food Cost %
Rib-Eye Steaks 2,000 $23.75 25 %
Fish 1,000 $28.00 32 %
Chicken 1,500 $21.50 20 %

Question

Quizplus · Accepted Answer

To calculate the potential food cost percentage, we need to first calculate the total sales and total food costs for each item.

Rib-Eye Steaks: 
Total Sales = 2,000 x $23.75 = $47,500 
Total Food Cost = $47,500 x 25% = $11,875

Fish: 
Total Sales = 1,000 x $28.00 = $28,000 
Total Food Cost = $28,000 x 32% = $8,960

Chicken: 
Total Sales = 1,500 x $21.50 = $32,250 
Total Food Cost = $32,250 x 20% = $6,450

Total Sales = $47,500 + $28,000 + $32,250 = $107,750 
Total Food Cost = $11,875 + $8,960 + $6,450 = $27,285

Potential Food Cost % = (Total Food Cost / Total Sales) x 100 
= ($27,285 / $107,750) x 100 
= 25.3%

Therefore, the best choice is B.

What Should the Potential Food Cost (In Percentage) at the Inn