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Registered Dietitian Exam Prep

Category - Foodservice

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Which of the following is true about the contribution margin in foodservice? Choose all that apply.

It is a measure of the profitability of an individual menu item
It varies with food cost and selling price
It is set by the foodservice director
None of the above

Explanation

Answers: A and B - Contribution margins are determined to provide information about a menu item’s relative popularity versus its cost. A contribution margin is calculated by subtracting an item’s food cost from its selling price. Contribution margins may be classified as high or low, depending on the average contribution for the whole menu.

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Registered Dietitian Exam Prep

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