Costing Problems

Once a recipe is written and the final portion size determined, it is necessary to determine the purchase price of all the ingredients. For example: One 25-pound bag of flour costs $5.00. That total quantity is then broken down to the most commonly used unit of measurement (pound, ounce, etc.). Assuming that the commonly used unit for flour is 1 pound, its cost would be found using the first following formula below.

If, in a given recipe using flour, two common units (2 pounds) are used, the second following formula below is used.