2. Purchase Price and Food Cost Pertemuan 10 Mata kuliah: V0274 - Pengolahan Makanan II (CULINARY II) Tahun: 2010

3. Bina Nusantara University 3 Purchase Price and Food Cost

4. Chapter Objectives Identify Calculating Purchase Price Identify Calculating Food Cost Bina Nusantara University 4

5. Purchase Price and Food Cost The difference between purchase price and actual food cost is called the yield factor and is expressed in percentages. This percentages is never identical to trim waste or loss. To calculate the actual cost, the following information must be available: Purchase price Percent of loss Net weight percentages (gross weight minus trimming/losses) Formula: Purchase price X 100% 100 % - weight loss%= net price Purchase price X 100% Net weight %= net price Bina Nusantara University 5

6. Example 1 kg whitefish,w/heads,costsfr.14.40purchase price Loss due to filleting28%weight loss in % Usable fish (fillets)72%net weight in % Solution 14.40(fr.)X 100%the actual cost of 1 kg is 20.00 fr 72 % = fr. 20.00 Net price fr 20.00The yield factor in francs is the - Purchase price - fr 14.40difference between the net price Yield factor (in francs) fr 5.60and the purchase price. Yield Factor in Weight Percentages Loss in percentages X 100% 28% X 100 Net weight % = additional cost72% = 38.89% Additional Cost in Francs in Percentages Additional cost fr. X 1005.60% X 100% Purchase price = additional cost14.40 = 38.89% Bina Nusantara University 6

7. Copyright ©1999 John Wiley & Sons, Inc Bina Nusantara University 7