APPENDIX A | Focus on Formulas COSTING A RECIPE FORMULA
To cost a recipe, add together the costs of each ingredient in the amounts specified in the recipe. This often requires calculations to determine the cost per each, cost per ounce, or cost per pound.
For instance, if a recipe calls for 7 eggs, and eggs are $4.50 per dozen, the cost of the eggs would be: $4.50 ÷ 12 eggs/dozen = $0.375 per egg. $0.375/ egg x 7 eggs = $2.63 = the cost of the eggs in the recipe.
Example Calculate the cost of this recipe for Spinach and Cheese Egg Bake for 50 servings. Ingredient
Amount Fresh Spinach Grated Cheese Eggs Milk Total Cost
Price per serving
4 lbs. 10 oz. (EP)
3 lbs. 75 eggs 3 cups Price $1.55/ lb. $5.60/ lb.
$4.50/ dozen
$4.30/ gal Cost 10 oz/ 16 oz. per lb. = 0.625 lb. 4.625 lb. x $1.55/ lb. = $7.17 3 lb. x $5.60/ lb. = $16.80 $4.50 / 12 eggs = $0.375 per egg 75 x $0.375 = $28.13 $4.30 / 16 cups = $0.27/ cup 3 cups x $0.27/ cup = $0.81 $52.91 $52.91 ÷ 50 servings = $1.06/serving FOOD COST AS A PERCENTAGE OF SALES
FORMULA Food Cost as a Percentage of Sales = (Monthly Food Cost ÷ Monthly Sales Total) x 100