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Calculating Selling Price

Once you have calculated the recipe cost, the selling price per portion can be calculated using the following formula:
© International Culinary Studio

Once you have calculated the recipe cost, the selling price per portion can be calculated using the following formula:

Cost per portion divided by food cost percent times all times 100 equals selling price

Example: We have determined that the cost per portion is $3.57, and the food cost percentage is 25% for your operations; the selling price would then be:

An example using the above formula

Tip: Determining food cost using food cost forms and comparing it to the actual food cost, based on inventory, is a good method of making sure that your operation is running efficiently.

Now you are going to do a practical exercise calculating selling prices.

© International Culinary Studio
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How to Manage Food Costing in the Catering and Restaurant Industry

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