When pricing out a menu, we know it is important to use the Edible a portion Price. What would the effect on your profit margin be, if we only used the as purchased price to determine our cost and selling price?

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01-08-2022
Mathematics

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When pricing out a menu, we know it is important to use the Edible a portion Price. What would the effect on your profit margin be, if we only used the as purchased price to determine our cost and selling price?

Sagot :

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Ayfat23idn Ayfat23idn · Answer 1 · 2022-08-02T13:57:27-04:00

The effect of Edible a portion Price on your profit margin , if we only use the as purchased price to determine our cost and selling price is that it will maximize the profit because it will account for every part of the production.

What is edible portion cost?

The portion cost can be calculated by multiplying the cost of a usable kg with the portion size.

This can be represented as : portion cost = (portion size x cost of usable kg)

It should be noted that Edible portion (EP) serves as the portion of food which will be given top the customer after the preparation.

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Sagot :

What is edible portion cost?

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