Cost Per Portion Calculator

Formula

The formula to calculate the Cost Per Portion (CPP) is:

\[ CPP = \frac{TC}{NP} \]

Where:

$ CPP $ is the cost per portion (\$).
$ TC $ is the total cost of the item (\$).
$ NP $ is 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.

Example Calculation

Consider an example where:

Total Cost (TC): $200
Number of Portions (NP): 50

Using the formula to calculate the Cost Per Portion:

\[ CPP = \frac{200}{50} = 4 \text{ \$/portion} \]

This means that the cost per portion for this example is $4.