RD Exam Food Service Equations

determine # relief workers

# FT positions x 0.55

Determining popularity Index (menu mix)

# servings of certain item / total # servings of all items that day = %

NPU

(N in - N out) / N in

How to determine Order Point with Fixed Order Quantity Inventory System:

(avg. daily use) (Lead Time) + Safety Stock determines the order point (when you must reorder item)

food cost equation

(beginning invent. - ending inventory) + food purchases

How to determine mgs when given mEq?

(mEq / valence) = x/Atomic Weight...Cross multiply and divide

Nitrogen Balance

(protein intake/6.25) - (UUN + 4) or (UN + 2)

determine labor turnover rate

1. # employees terminated & replaced / total positions in dept. 2. multiply by 100

determine meals/ labor hour

1. # employees x # hours worked = total labor hours 2. determine total # meals produced if not given total = multiply # patients by 3...then multiply by 7 3. total # meals / total labor hours

How to forecast needs/sales:

1. # servings of desired food for that day / total # servings of all items that day = % 2. % x expected servings

How to determine # servings that will come from an uncooked item...% lost in prep?

1. AP x % yield = lb. lost 2. lb. lost - AP = EP 3. convert to oz. 4. EP (oz.) / desired portion size

Determining Cost of Profit Pricing

1. Add up all costs as % 2. Find desired FC% = subtract total from 100% 3. determine Selling Price = Actual FC ($) / desired FC% * FC is Fixed Cost

How to determine Selling Price with Factor Pricing Method (Traditional or Markup Method)?

1. Determine Markup Factor = 100/FC % (Fixed Cost) 2. Determine Selling Price = markup factor x raw FC

forecasting: time series - moving average equation

1. add up # for each month 2. divide by # of months = # needed for desired month

To find target food cost % for cost of profit pricing:

1. add up all percentages 2. subtract from 100%

payback period

1. add up the costs of service 2. add up costs saved by using the new service 3. divide costs of service by dollars saved

Determining needs for meals

1. determine EP = portion size x # servings 2. convert to lbs. 3. Raw amount to purchase = EP / % yield

determine # FTEs needed when given # minutes or hours it takes to make 1 meal, and # patients:

1. determine meals/ week: multiply # patients by 3 and then 7 2. multiply by how long it takes to make 1 meal = total min. or hrs. 3. convert minutes to hours = divide by 60 4. divide by 40 = # FTE needed

* How to determine selling price with prime cost method

1. determine prime cost = raw FC + Direct LC 2. determine price factor = 100 / (FC% + LC%) 3. determine Selling Price = prime cost x price factor

budget projections equation

1. multiply each % of income to sales 2. multiply those answers by their corresponding % increase 3. Add answer from step 1 & 2 together for each cost 4. Add up all 3 totals

How to determine pre-packaged cost of cookies?

1. multiply pre-made cookie cost by 12 (cost per dozen) 2. add up all self-made costs 3. compare to see which is cheapest

how to determine % yield if not provided, but are given the waste, shrinkage, or lost from cooking?

1. shrinkage - 100% = % yield

food cost per meal

1. subtract beginning and ending inventories 2. add to foods purchased 3. divide by # meals served that month

straight line depreciation

1. subtract: value of equipment - salvage value 2. divide by # of years of useful life

determine # seats needed

1. turnover # x hours cafe is open 2. divide by # customers

How many FTEs can 1 relief worker cover for "days off" each week?

2.5 FTE

What percent determines if an item is not popular?

<70%

M T W TH F broccoli 60 55 78 62 82 green beans 28 25 35 45 33 carrots 80 75 92 90 89 A) What is the popularity index for green beans on Wednesday? B) If you expect to serve 300 people next Friday how many servings of carrots can you expect to serve?

A) 17% 35/205=17% B) 129 carrots 89/204= 43% PI 43% of 300 expected= 129 carrots

Net profit

ALL expenses - sales

EP cost

AP / EP

How much ground beef should be purchased to produce twenty, four ounce servings if it has a 50% yield?

Ans= 10 pounds 4 oz x 20 servings= 80 ounces (5 # EP) 5 pounds/ .50= 10 pounds *if given in question as waste, shrinkage, or loss subtract from 100% to get % yield

How many servings can you get from 9 pounds raw meat with a 30% shrinkage if the serving size is 5 ounces?

Ans= 20.16 portions (30% shrinkage)(raw 9 pounds)= 2.7 # lost in cooking 9-2.7=6.3 # remaining (100.8 oz) 100.8 oz/5 oz = 20.16 portion (round down)

RQ (respiratory quotient)

CO2 expired / O2 consumed

Markup is determined how?

Cost - Selling Price =

FTE= full time equivalent

FTE/Day= labor hours worked per day/ 8 hr work load FTE/Week= labor hours worked per week/ 40 hrs FTE/Year= labor hours worked per year/ 2080

Average Check is also known as:

Sales Analysis Ratio

Fixed cost 25% labor cost 35% Food cost $.78 Profit Cost 10% __________ Total cost 70%

To find the targeted food cost %: 100% -70% = 30% To find the selling price: .78 food cost/ .30 desired food cost % = selling price $2.60

determine adjusted FTE

absolute FTE x 1.55

EOQ (Do not need to memorize formula, only purpose)

attempts to find quantity that minimizes both purchasing and inventory costs. Determines the order size that is most economical

If the food cost % is 30, and the raw food cost of the item is $.18, what is the selling price using the factor method?

ans= $.59 100/30= 3.3 (markup factor) x .18= .59 if including hidden costs: 3.3 x (.18 + .018) = $.65

Determine the food cost per meal using the following: Inventory June 1 $36250 Inventory July 1 $34375 Foods purchased June $52390 Meals served in June 134000

ans= $0.40 per meal (36250 - 34375) + 52390 __________________ = $0.40 per meal 134000

You purchase an 18# ready to cook turkey at $.68 per pound. The AP price is $12.24. After cooking and slicing, edible portion is just 9.9 pounds. Determine the EP cost per pound.

ans= $1.24 $12.24/ 9.9 = $1.24

Determine the selling price using the prime cost method. Raw food: 1.80 labor: 5 min at $12/hr raw food cost %: .333 Labor cost %: .467

ans= $3.50 raw food cost 1.80 + labor cost 1.00 = prime cost 2.80 Food cost % + labor cost %= 80% 100/80= 1.25 markup price factor selling price = 2.80 x 1.25 = $3.50

Determine the BE using the following: FC $25000 VC $60000 Sales $100000

ans= $62500 25000/ 1-(60000/100000) = $62500

A food service has seven 40 hour employees, five 20 hour employees, and three 16 hour employees. How many FTE's are involved?

ans= 10.7 FTEs (7)(40) + (5)(20) + (3)(16) = 428 hrs/40 = 10.7 FTE's

How many FTE's can you hire with a weekly budget of $8640 if the salary is $12/hr?

ans= 18 FTE's $8640/$12 = 720 hours/40 = 18

Food cost for June- $37380 Average inventory cost- $17500. Find inventory turnover rate.

ans= 2.1 37380/17500= 2.136

What is the order point for peaches if, on average, two cases are used each day, two cases are needed as safety stock, and it takes 10 days from placing order until delivery?

ans= 22 cases (2 x 10) + 2 = 22 when supply drops below 22 it is time to order

At the end of a six month period, there are 80 positions in the department. During that time, 18 employees were terminated and replaced. What is the labor turnover rate?

ans= 22.5% 18/80= 22.5%

Determine the BE point using the following: fixed costs $50000 selling price $5.00 Variable costs $3.25

ans= 28572 meals 50000/ (5.00-3.25) = 28572

20 FTE produced 2700 meals during one 40 hour week. How many meals were produced per labor hour?

ans= 3.38 meals per labor hour 2700 meals/800 hours= 3.38 * pay attention if it asks for meals per labor hour or minute

Cases peaches used: July- 325 August- 279 September- 317. How many cases will be needed in October?

ans= 307 cases 325+279+317/3= 307 * if forecasting for Nov delete July include october

The cafeteria income for Tuesday was $640. Food cost for the day was $265. What is the food cost percentage?

ans= 41.4% $265/$640= 41.4%

The cafeteria is open for 3.5 hours. Seats turnover 1.5 times per hour. You need to seat 250 customers. How many seats do you need?

ans= 48 seats 3.5 x 1.5 = 5.25 can be served from one seat 250/5.25= 48 seats needed

You have invested in new hardware and software that will reduce the labor hours needed to complete a task. What is the payback period? hardware- $3500 Software- $2400 Staff instruction- $1000 labor hrs saved- 6/wk at $20/hr

ans= 57.5 wks 3500+2400+1000= 6900 6 hrs/wk at 20$/hr= 120$/ wk saved 6900/120 = 57.5 wks

Determine net profit, gross profit, and profit margin: Sales: $127771 Cost of sales: $54779 Salaries: $31324 FICA: $4380 Benefits: $8191 Utilities: $3697 Supplies: $4272 Depreciation: $16579 Taxes: $2324

ans= net profit- 2225 127771-125546= 2225 Gross profit- 72992 127771-54779= 72992 Profit margin- .02 2225/127771= .02

What does it mean if the average check is < normal?

change menu items or promote more

inventory turnover rate

cost of sales ( food cost) / average inventory cost

Gross Profit

cost of sales - sales

determine seat turnover

customers per meal / # seats

food cost percentage equation

daily FC / daily income

food cost percentage is also known as...

daily food cost report

what are key words to look for for labor turnover rate?

end of recording period or replacement employee

determining BEP (Break Even Point) in sales volume

fixed costs / (1-(Variable Costs/Sales))

Determining BEP (Break Even Point) in units:

fixed costs / (Sales - Variable costs)

What does Average Check, or Sales Analysis Ratio, help the Food Service Dept. do?

helps detect trends

Determine Value of Inventory with FIFO:

last price paid x # units on inventory

Assets =

liabilities + capital (equity)

Selling Price with Hidden Costs

markup factor x (raw FC + 10% of raw FC) FC=Fixed Cost

meal equivalent is a:

measure of productivity

profit margin

net profit / sales

Breakeven point (BE point)

point at which sales will exactly cover fixed and variable costs. Fixed costs/ selling price-variable costs

What is the most commonly used assessment of overall financial efficiency?

profit margin

cost of sales

raw food sold + beverages sold

Average Check Equation

sales / # customers served

Why would Cost of Profit Pricing be used?

to guarantee a certain profit with each sale

meal equivalent equation

total sales / average cost of 1 meal

Social Marketing

used to advance a social cause, idea, and change behavior