Check Your Answers After You Read

Section 7.1

Review Key Concepts

1. Changes that can make a business more profitable include: changes in the way a task is done, reorganizing storage space, changing staff or schedules, or adding employee training.

2. Food must be inspected to ensure that quality is as described, that you received the correct product in the correct amount and unit size, that the prices on the invoice and purchase order match, the product is not damaged, and that it was shipped properly.

Practice Culinary Academics

3. Social Studies Supply is the amount of a product available, and demand is the amount of product people want. The relationship between the two is an important figure in determining how to price an item. A manager needs to consider supply and demand when making purchasing decisions and determining pricing.

4. English Language Arts The language used in the letter should be responsive to the customer's specific complaint, respectful and polite, and use correct spelling and grammar.

5. Mathematics Purchases for the month: $10,000 per day × 30 days = $300,000. Cost of sales = $25,000 + $300,000 − $20,000 = $305,000.

Section 7.2

Review Key Concepts

1. Positive reinforcement helps build employee confidence. It makes employees feel appreciated and rewarded, so they will learn better and work hard to earn recognition. Mentoring helps employees learn faster by giving them one-on-one attention from someone who already knows the job well.

2. An effective work area will allow for easy maintenance and inventory access. It will also provide a safe and productive environment for employees. It will allow work to be flexible, and it will protect equipment from damage.

3. Managers are responsible for training employees in the correct use of equipment. Managers must make sure employees are properly trained to operate each piece of equipment they will use on the job.

Practice Culinary Academics

4. English Language Arts Your article summaries should demonstrate an understanding of what you read. Your response should be both critical and analytical, rather than a restatement of the articles. Your discussion should focus on the most effective ways to handle common management problems based on what they learned and their own opinions.

5. Mathematics The total weekly labor cost is $2,060, which averages $51.50/hour. Each of the two sandwich makers makes $10.25 × 40 = $410 in a week. The cashier makes $9.75 × 40 = $390 in a week. The manager makes $850 in a week. Therefore, the total weekly labor cost is $410 + $410 + $390 + $850 = $2,060. The average hourly cost equals $2,060 per week ÷ 40 hours per week = $51.50/hour.

Section 7.3

Review Key Concepts

1. When analyzing a location, consider traffic patterns, as well as how accessible the location is to the general public. Prospective business owners should also think about whether the location is affordable, whether a new structure will have to be built, if an existing structure can be renovated, and why the last owner vacated the premises.

2. Direct marketing is a form of marketing in which materials, such as letters and advertisements, are mailed directly to potential customers.

Practice Culinary Academics

3. English Language Arts Be creative with their promotional plans. Consider the type of restaurant chosen and the needs and desires of the people in the neighborhood. The promotion should focus on making neighborhood residents aware of how the restaurant can meet their needs. For example, a good promotional plan might be a 2-for-1 deal to appeal to low-income residents or families.

4. Science Use the strategies they learned in the section about analyzing the marketplace and apply them to determine what you believe the marketplace will look like in your community in the near future. For example, if people of a higher economic class are moving to the community, there may soon be a demand for more fine-dining restaurants.

5. Mathematics Pretend the office location has 1,000 customers who each spend $2, for a total of 1,000 × $2 = $2,000. To determine the residential location revenue, increase customers by 30% to 1,300 (1,000 × 0.30 = 300; 1,000 + 300 = 1,300), and decrease spending by 20% to $1.60 ($2 × 0.8 = $1.60). The revenue for the residential location is 1,300 × $1.60 = $2,080, which is greater than the revenue for the office location.