Enter the food sell price ($) and the food cost of preparation and ingredients ($) into the Food Profit Margin Calculator. The calculator will evaluate and display the Food Profit Margin.
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Food Profit Margin Formula
The following formula is used to calculate the Food Profit Margin.
FPM = (FSP – FC) / FSP * 100
- Where FPM is the Food Profit Margin (%)
- FSP is the food sell price ($)
- FC is the food cost of preparation and ingredients ($)
How to Calculate Food Profit Margin?
The following example problems outline how to calculate Food Profit Margin.
Example Problem #1:
- First, determine the food sell price ($).
- The food sell price ($) is given as: 75.
- Next, determine the food cost of preparation and ingredients ($).
- The food cost of preparation and ingredients ($) is provided as: 60.
- Finally, calculate the Food Profit Margin using the equation above:
FPM = (FSP – FC) / FSP * 100
The values given above are inserted into the equation below and the solution is calculated:
FPM = (75 – 60) / 75 * 100 = 20 (%)
Example Problem #2:
For this problem, the variables required are provided below:
food sell price ($) = 89
food cost of preparation and ingredients ($) = 70
Test your knowledge using the equation and check your answer with the calculator above.
FPM = (FSP – FC) / FSP * 100 = ?
