Yes, the number was choreographed by her husband, the legendary director/choreographer Bob Fosse in June 1969 for The Ed Sullivan Show. He choreographed numerous numbers for her on that show thru the years.
Though Bob Fosse and Gwen Verdon separated in 1973, they never divorced. They continued to work extensively in various projects (and capacities) until his death in September 1987 (Gwen was with Bob Fosse when he had that final heart attack he died in her arms). The original 1975 Broadway production of CHICAGO was a gift from Bob Fosse to her in order for her to play Roxie Hart a role she had been dying to play since the 1950's.
And yes the role of Audrey in Bob Fosse's pseudo-autobiographical film ALL THAT JAZZ is based on Gwen Verdon.
"I love Jimmy Marsden so much I want to kick him in the face!&q2000uot; - Adam Shankman to Nikki

Choreography is by Bob Fosse, her ex-husband, though they remained collaborative partners after the divorce. Watch the film All That Jazz. The red-haired ex-b68wife is based on Gwen Verdon.

More importantly, there is an AMAZING video on youtube of Mexican Breakfast set to UNK's WALK IT OUT
You must watch it!
http://www.youtube.com/watch?v=KU3N5c2Kxnw&feature=related
(sorry guys i dont know how to make it a link, hopefully one of you can!)