Which figure is needed to convert a purchase price into the cost per servable pound?

Which figure is needed to convert a purchase price into the cost per servable pound?

• A. Packaging weight
• B. Purchase price
• C. Edible yield percentage
• D. Supplier rating

Answer: (C)

To convert a purchase price into the cost per servable pound, you must know how much of the product is edible. The edible yield percentage indicates the portion of the as-purchased weight that can be served. Multiply the total package weight by this yield percentage to obtain the edible pounds, then divide the purchase price by that amount to get the cost per servable pound. For example, a 10-pound package with a 70% edible yield yields 7 edible pounds; at $40, the cost per servable pound is $40 ÷ 7 ≈ $5.71. Packaging weight and supplier rating don’t provide the edible portion needed for this conversion.

To convert a purchase price into the cost per servable pound, you must know how much of the product is edible. The edible yield percentage indicates the portion of the as-purchased weight that can be served. Multiply the total package weight by this yield percentage to obtain the edible pounds, then divide the purchase price by that amount to get the cost per servable pound. For example, a 10-pound package with a 70% edible yield yields 7 edible pounds; at $40, the cost per servable pound is $40 ÷ 7 ≈ $5.71. Packaging weight and supplier rating don’t provide the edible portion needed for this conversion.