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The average contribution margin (CM) per item on a menu is $6.74 and the menu mix (MM) percentage that is considered to be high is 12. A menu item with a contribution margin of $6.93 and a menu mix of 11, what menu engineering term would be used to describe this menu item?

A. Plowhorse
B. Puzzle
C. Dog
D Star

User Durum
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1 Answer

2 votes

Final answer:

A menu item with a higher than average contribution margin of $6.93 and a menu mix of 11 is considered a Puzzle in menu engineering terms.

Step-by-step explanation:

Given the average contribution margin (CM) per item on a menu is $6.74 and a menu mix (MM) percentage that is considered to be high is 12, a menu engineering term needs to be applied to a menu item with a CM of $6.93 and a MM of 11. The menu item has a higher than average CM but a slightly below-average MM. In menu engineering, items with a higher CM but lower MM than designated high-performing thresholds are termed Puzzles. This means the item has potential due to its good contribution margin but isn't as popular as it could be, indicating that perhaps marketing or positioning of the item could be improved to increase its menu mix percentage.

User Christosc
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