Question

You may download the Excel spreadsheets for the Test Your Skills exercises from the student companion website at www.wiley.com/college/dopson. Complete the exercises by placing your answers in the shaded boxes and answering the questions as indicated. 1. Boniso operates Boniso's Mexican Restaurant in an urban city in the South. He has worked hard at setting up cost control systems, and he is generally happy with his overall results. However, he is not sure if all of his menu items are providing profitability for his restaurant. He decides to use food cost matrix and contribution margin matrix analyses to study each of his menu items. a. Complete his menu analysis worksheet. Menu Analysis Worksheet Number Total Sales Selling Price $12.95 Item Cost Total Cost Item Contribution Margin Total Contribution Margin Food Cost% Menu Item Sold 147 $4.92 Fajita Plate Enchilada Dinner $9.95 $3,48 200 82 $ 6.95 $1.74 Menudo Mexican Salad Chalupa Dinner 7.95 $2.51 Burrito Dinner $9.95 225 $5.95 Taco Dinner Total Weighted Average

Answer 1

Menu Item	Number Sold	Selling Price	Total Sales	Item Cost	Total Cost	Item Contribution Margin	Total Contribution Margin	Food Cost%
Fajita Plate	147	$12.95	$1,903.65	$4.92	$723.24	$1,180.41	38%	38%
Enchilada Dinner	200	$9.95	$1,990.00	$3.48	$696.00	$1,294.00	35%	35%
Menudo	82	$6.95	$569.90	$1.74	$142.68	$427.22	25%	25%
Mexican Salad	117	$7.95	$930.15	$2.39	$279.63	$650.52	30%	30%
Chalupa Dinner	125	$8.95	$1,118.75	$2.51	$313.75	$805.00	28%	28%
Burrito Dinner	168	$9.95	$1,671.60	$3.25	$546.00	$1,125.60	33%	33%
Taco Dinner	225	$5.95	$1,338.75	$1.55	$348.75	$990.00	26%	26%
Total	1064	$62.65	$9,522.80	$19.84	$3,050.05
Weighted Average	152	$8.95	$1,360.40	$2.83	$435.72
Food cost Matrix
High Food cost percent	fajita, enchilada are high cost with 38 and 35%
Low Food cost percent	Chalupa and Mexican salad are lost cost with 28 and 30%
Low Popularity (Below 152 Sales)
High Popularity (above 152 Sales)
High Contribution Margin
(Above $ 6.08 ) fajita, chalupa enchilada, burrito Low Contribution Margin
(Below $ 6.08 ) menudo, mexican
Low Popularity (Below 152 Sales)
High Popularity (above 152 Sales)