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 Menu Item
Fajita Plate
Enchilada Dinner
Menudo
Mexican Salad
Chalupa Dinner
Burrito Dinner
Taco Dinner
Total
Weighted Average Chapter 10
Q 1.a. Item
Total
Number Selling
Contribution Contribution Food
Sold
Price
Total Sales Item Cost Total Cost Margin
Margin
Cost %
147
$12.95 $1,903.65
$4.92
$723.24
$8.03
$1,180.41
38%
200
$9.95 $1,990.00
$3.48
$696.00
$6.47
$1,294.00
35%
82
$6.95 $569.90
$1.74
$142.68
$5.21
$427.55
25%
117
$7.95 $930.15
$2.39
$279.63
$5.56
$650.52
30%
125
$8.95 $1,118.75
$2.51
$313.75
$6.44
$805.00
28%
168
$9.95 $1,671.60
$3.25
$546.00
$6.70
$1,125.60
33%
225
$5.95 $1,338.75
$1.55
$348.75
$4.40
$990.00
26%
1,064
$9,522.80
$3,050.05
$6,473.08
152 $8.95 $1,360.40 $2.87 $435.72 $6.08 $924.73 32% Chapter 10, Question 1. b.
Using the results of Boniso’s menu analysis worksheet (in part a), fill in
the appropriate average food cost, popularity, and contribution margin in
the blanks below. Then, place the menu items in the appropriate squares
in the matrices.
Food Cost Matrix
High Food Cost %
(Above 32 %) fajita enchilada, burrito menudo, mexican
salad, chalupa taco 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
salad taco Low Popularity
(Below 152
Sales) High Popularity
(Above 152
Sales) Low Food Cost % (Below
32 %) Contribution Margin Matrix Chapter 10
Q 1.b. Chapter 10, Question 2
Garikai is a manager at Boniso’s Mexican Restaurant (from the previous question), and he believes that
goal value analysis, rather than Boniso’s matrix analysis, is a better way to study the profitability of his
menu items. a. Using the following goal value analysis data, help Garikai analyze the restaurant’s menu items. 2.a.
After computing the following goal values, sort (in descending rank order) by goal value. Be sure to include the overall
menu in the appropriate rank order. Spreadsheet hint: Calculate the goal values by placing the ENTIRE Goal Value
formula for each item in the Goal Value column as follows: (1 − Food Cost %) × Item Popularity × Selling Price × (1 −
(Variable Cost % + Food Cost %)). The table will not sort correctly if partial calculations for Goal Value exist in columns A,
B, C, or D. For example, DO NOT calculate (1 − Food Cost %) in the A column or (1 − (Variable Cost % + Food Cost %))
in the D column. Goal Value Analysis Results Item
Fajita Plate
Enchilada Dinner
Menudo
Mexican Salad
Chalupa Dinner
Burrito Dinner
Taco Dinner
Overall Menu (Goal
Value) Food Cost %
Number
Selling
Variable Cost %
(in decimal form) Sold
Price
(in decimal form)
0.38
147
$12.95
0.28
0.35
200
$9.95
0.28
0.25
82
$6.95
0.28
0.30
117
$7.95
0.28
0.28
125
$8.95
0.28
0.33
168
$9.95
0.28
0.26
225
$5.95
0.28
0.32 152 $8.95 0.28 2.b.
b. After analyzing his menu items, Garikai believes he can improve the chalupa dinner by lowering the
selling price to $8.55. He believes that this lower price will increase number of chalupa dinners sold to
150. However, the change in price will increase both his food cost percentage and variable cost
percentage to 29 percent for the chalupa dinner. Results of Changes Made to Chalupa Dinner Item "A"
"B"
Comments
Content
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 Menu Item
Fajita Plate
Enchilada Dinner
Menudo
Mexican Salad
Chalupa Dinner
Burrito Dinner
Taco Dinner
Total
Weighted Average Chapter 10
Q 1.a. Item
Total
Number Selling
Contribution Contribution Food
Sold
Price
Total Sales Item Cost Total Cost Margin
Margin
Cost %
147
$12.95 $1,903.65
$4.92
$723.24
$8.03
$1,180.41
38%
200
$9.95 $1,990.00
$3.48
$696.00
$6.47
$1,294.00
35%
82
$6.95 $569.90
$1.74
$142.68
$5.21
$427.55
25%
117
$7.95 $930.15
$2.39
$279.63
$5.56
$650.52
30%
125
$8.95 $1,118.75
$2.51
$313.75
$6.44
$805.00
28%
168
$9.95 $1,671.60
$3.25
$546.00
$6.70
$1,125.60
33%
225
$5.95 $1,338.75
$1.55
$348.75
$4.40
$990.00
26%
1,064
$9,522.80
$3,050.05
$6,473.08
152 $8.95 $1,360.40 $2.87 $435.72 $6.08 $924.73 32% Chapter 10, Question 1. b.
Using the results of Boniso’s menu analysis worksheet (in part a), fill in
the appropriate average food cost, popularity, and contribution margin in
the blanks below. Then, place the menu items in the appropriate squares
in the matrices.
Food Cost Matrix
High Food Cost %
(Above 32 %) fajita enchilada, burrito menudo, mexican
salad, chalupa taco 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
salad taco Low Popularity
(Below 152
Sales) High Popularity
(Above 152
Sales) Low Food Cost % (Below
32 %) Contribution Margin Matrix Chapter 10
Q 1.b. Chapter 10, Question 2
Garikai is a manager at Boniso’s Mexican Restaurant (from the previous question), and he believes that
goal value analysis, rather than Boniso’s matrix analysis, is a better way to study the profitability of his
menu items. a. Using the following goal value analysis data, help Garikai analyze the restaurant’s menu items. 2.a.
After computing the following goal values, sort (in descending rank order) by goal value. Be sure to include the overall
menu in the appropriate rank order. Spreadsheet hint: Calculate the goal values by placing the ENTIRE Goal Value
formula for each item in the Goal Value column as follows: (1 − Food Cost %) × Item Popularity × Selling Price × (1 −
(Variable Cost % + Food Cost %)). The table will not sort correctly if partial calculations for Goal Value exist in columns A,
B, C, or D. For example, DO NOT calculate (1 − Food Cost %) in the A column or (1 − (Variable Cost % + Food Cost %))
in the D column. Goal Value Analysis Results Item
Fajita Plate
Enchilada Dinner
Menudo
Mexican Salad
Chalupa Dinner
Burrito Dinner
Taco Dinner
Overall Menu (Goal
Value) Food Cost %
Number
Selling
Variable Cost %
(in decimal form) Sold
Price
(in decimal form)
0.38
147
$12.95
0.28
0.35
200
$9.95
0.28
0.25
82
$6.95
0.28
0.30
117
$7.95
0.28
0.28
125
$8.95
0.28
0.33
168
$9.95
0.28
0.26
225
$5.95
0.28
0.32 152 $8.95 0.28 2.b.
b. After analyzing his menu items, Garikai believes he can improve the chalupa dinner by lowering the
selling price to $8.55. He believes that this lower price will increase number of chalupa dinners sold to
150. However, the change in price will increase both his food cost percentage and variable cost
percentage to 29 percent for the chalupa dinner. Results of Changes Made to Chalupa Dinner Item "A"
"B"