Enter the total cost of the item and the number of portions into the calculator to determine the cost per portion. This calculator helps in budgeting and pricing menu items in the food service industry.
Cost Per Portion Formula
The following formula is used to calculate the cost per portion.
CPP = TC / NP
Variables:
- CPP is the cost per portion ($)
- TC is the total cost of the item ($)
- NP is the number of portions
To calculate the cost per portion, divide the total cost of the item by the number of portions.
What is Cost Per Portion?
Cost per portion is the cost associated with each individual serving or portion of a food item. It is a crucial calculation in the food service industry for determining the price of menu items and ensuring profitability. By understanding the cost per portion, businesses can set appropriate selling prices that cover the cost of ingredients while providing a margin for profit.
How to Calculate Cost Per Portion?
The following steps outline how to calculate the Cost Per Portion.
- First, determine the total cost of the item (TC) in dollars.
- Next, determine the number of portions the item yields (NP).
- Next, gather the formula from above = CPP = TC / NP.
- Finally, calculate the Cost Per Portion (CPP) in dollars.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Total cost of the item (TC) = $50
Number of portions (NP) = 10