DTR EXAM: FOOD SERVICE MANAGEMENT FORMULAS

DTR EXAM: FOOD SERVICE
MANAGEMENT FORMULAS

Net Profit - ANSWER-profit margin x total sales

break-even point - ANSWER-fixed cost / (1 - variable rate)

variable rate - ANSWER-variable cost / sales price per unit

edible portion cost - ANSWER-(AP cost per lb x AP weight) / % yield

percent yield - ANSWER-AP cost / EP cost

quantity to order - ANSWER-# portions x portion size / yield factor

cost per meal - ANSWER-total cost of food / total # meals served

food cost percentage - ANSWER-cost of purchased food / total revenue x 100

labor cost percentage - ANSWER-payroll, benefits, other / total revenue x 100

contribution margin - ANSWER-sales price - variable cost

variable cost - ANSWER-sales price per unit x variable rate

total meals w meal equivalent factor - ANSWER-(total cafeteria sales/MEQ) + total # of
meals served

Break even point in units - ANSWER-(fixed costs + desired costs) / (selling price per
unit - variable cost per unit)

return on investment - ANSWER-(selling price of equipment - initial price of equipment) /
initial price of equipment