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Sample Solution for SITHKOP015 - Design and Cost Menu

Solve the following problems based on methods and formulas for calculating portion yields and costs from raw ingredients. Show your workings to get the answers.

1. A restaurant uses 10 lbs of chicken to make a batch of chicken curry. If the cost of chicken is $3 per pound, what is the cost per portion (assuming each portion uses 0.5 lbs of chicken)?

2. If a restaurant has a target food cost percentage of 30% and wants to sell a dish for $12, what is the maximum cost they can spend on ingredients per portion?

3. A recipe calls for 2 cups of flour and yields 12 muffins. If a bag of flour costs $5 and contains 10 cups, what is the cost of the flour per muffin?

4. A cafe uses 5 lbs of coffee beans per week and sells an average of 50 cups of coffee per day. If each cup of coffee requires 0.1 lbs of coffee beans, what is the cafe's weekly cost for coffee beans if the cost per pound is $8?

5. A bakery wants to make a profit margin of 50% on a batch of cupcakes. If the cost of ingredients is $20 and the bakery wants to sell the cupcakes for $60, how many cupcakes must be sold in the batch to achieve the target profit margin?

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Management Assignment Sample

Q1:

Answer :

1. Cost per Portion of Chicken Curry

  • Total cost: 10 lbs × $3/lb = $30
  • Portions: 10 lbs ÷ 0.5 lbs/portion = 20 portions
  • Cost per portion: $30 ÷ 20 = $1.50

2. Maximum Cost per Portion

  • Selling price: $12
  • Food cost percentage: 30%
  • Max cost: $12 × 0.30 = $3.60

 

3. Cost of Flour per Muffin

Flour cost: $5 for 10 cups → $0.50/cup

Recipe cost: 2 cups × $0.50 = $1

Cost per muffin: $1 ÷ 12 = $0.08

4. Weekly Cost for Coffee Beans

Weekly usage: 5 lbs × $8/lb = $40

5. Number of Cupcakes for Profit Margin

Total cost: $20

Selling price: $60

Profit needed (50%): $60 × 0.50 = $30

Total required: $20 + $30 = $50

Cupcakes needed: $50 ÷ $60 = 1 cupcake

Q1: What is the method and formula for calculating the following using portion yields and costs from raw ingredients: 1. food cost percentage 2. budgeted sales price 3. standard measures 4. standard yield tests 5. GST addition and subtraction Max 75 words each.

Answer :

1. Food cost percentage

This method calculates the food cost percentage by assessing the overall cost of a dish relative to its total revenue. It involves summing the costs of all ingredients used and dividing that figure by the total revenue from sales. To determine total food costs, add purchases to the beginning stock value and subtract the closing stock value. This analysis helps management evaluate profitability and adjust pricing strategies based on ingredient costs over a selected time period.
Formula: Basic Food cast percentage =Food cost($)/Food sales($) x 100

2. Budgeted sales price

The budgeted sales price method determines a dish's selling price based on anticipated sales volume and costs. This involves calculating the expected sales and dividing it by the volume of units projected for sale during a specified period. The formula used is: Budgeted Sales Price = Cost of Ingredients / (1 - (Food Cost Percentage + Desired Profit Margin). This method aids in pricing decisions to ensure profitability while meeting market expectations.
Formula: Budgeted Sales Price = Cost of Ingredients / (1 - (Food Cost Percentage + Desired Profit Margin)

3. Standard measures

These method is standard measures establish the cost of a dish's portion by calculating the standard portion cost. This is done by summing the costs of all ingredients used in a recipe and dividing the total by the number of portions produced. It is crucial to include the costs of any garnishes in this calculation. Regular verification of the standard portion cost against fluctuating food costs is essential to maintain accuracy and profitability.
Formula: Standard portion cost = Purchase price per unit/Number of portions per unit

4. Standard yield tests

Standard yield tests evaluate the yield percentage of edible portions from purchased ingredients. This process begins by calculating the as-purchased quantity, then determining the edible portion by subtracting the trim weight, which accounts for waste from peeling or packaging, from the AP weight. The resulting yield percentage offers insights into ingredient usage efficiency, enabling management to assess costs related to waste. This information is crucial for optimizing purchasing strategies and minimizing expenses, ultimately improving overall profitability in food service operations.
Formula: Yield % = Edible Portion Quantity/As- Purchase Quantity x100

5. GST addition and subtraction

The GST addition and subtraction method accounts for Goods and Services Tax (GST) when calculating food costs. It involves adding the GST paid on sales to the selling price and subtracting any GST received. This ensures the calculation of the actual food cost aligns with tax obligations. Finally, the total cost of the recipe is divided by the adjusted selling price to obtain the food cost percentage, providing a clearer picture of profitability and compliance.
Formula: Adjusted Food Cost=Total Cost+GST Paid−GST Received

Q1: Using your answers from above, solve the following problems. Show your workings to arrive at the solution. 1. A restaurant purchases a 10-lb case of ground beef for $30. If the yield percentage after cooking is 75%, what is the cost per portion if each portion uses 0.5 lb of beef? 2. A catering company wants a 25% food cost percentage for a dinner event where each guest will be served the chicken with vegetables and rice. The cost of chicken is $2 per lb, vegetables are $1 per lb, and rice is $0.50 per lb. If each guest will be served 6 oz of chicken, 3 oz of vegetables, and 2 oz of rice, what should be the budgeted sales price per guest? 3. A recipe for chocolate chip cookies requires 2 cups of flour and 2 cups of chocolate chips. If a bag of flour costs $5 and contains 10 cups, and a bag of chocolate chips costs $4 and 4 cups, what is the total cost of ingredients per batch of cookies? 4. A restaurant wants to standardize its portion sizes and has established that each portion of pasta should be 4 oz after cooking. A 16 oz package of pasta yields 12 oz after cooking. How many portions can the restaurant make from one package of pasta? 5. A cafe sells a sandwich for $8.50 and charges 5% GST. What is the total cost of the sandwich, including GST? What is the amount of GST included in the price of the sandwich?

Answer :

1. Cost per Portion of Ground Beef

  • Cost of ground beef: $30 for 10 lbs
  • Yield after cooking: 75% of 10 lbs = 7.5 lbs
  • Cost per lb: $30 / 10 lbs = $3/lb
  • Cost per 0.5 lb portion: $3 × 0.5 = $1.50

2. Budgeted Sales Price per Guest

  • Desired food cost percentage = 25%
  • Cost of chicken = $2/lb
  • Cost of vegetables = $1/lb
  • Cost of rice = $0.50/lb
  • Portions: Chicken = 6 oz, Vegetables = 3 oz, Rice = 2 oz

Conversions:
Chicken cost per guest:
Chicken cost = 6 ozx1 Ib/16 oz x2=0.75 dollars

Vegetable cost per guest:
Vegetable cost=3oz× 1 Ib/16oz x2=0.75 dollars
Vegetable cost=3oz×16oz1lb​×1=0.1875dollars
Rice cost=2oz×16oz1lb​×0.5=0.0625dollars
Total cost=0.75+0.1875+0.0625=1dollar
Budgeted Sales Price=1−Food cost percentageTotal cost​=1−0.251​=0.751​=1.33dollars
The budgeted sales price per guest is $1.33.

3. Total Cost of Ingredients per Batch of Cookies

Flour: 2 cups; Cost = $5 for 10 cups
Chocolate chips: 2 cups; Cost = $4 for 4 cups
Calculation:
Cost of flour=(5/10​)×2=1dollar
Cost of chocolate chips=(4/4​)×2=2dollars
Total cost=1+2=3dollars
Answer: The total cost of ingredients per batch of cookies is $3.00.

4. Portions from a Package of Pasta

Package weight = 16 oz
Yield after cooking = 12 oz
Portion size = 4 oz
Calculation:
Number of portions=Yield/Portion size=4oz12oz​=3
Answer: The restaurant can make 3 portions from one package of pasta.

5. Total Cost of Sandwich Including GST

Price of sandwich = $8.50
GST = 5%
Calculation
GST amount=8.50×0.05=0.425dollars≈0.43dollars
Total cost=8.50+0.425=8.925dollars≈8.93dollars
Answer: The total cost of the sandwich, including GST, is $8.93, and the amount of GST included in the price is $0.43.