The formula to calculate the cost per serving (CPS) is:
\[ \text{CPS} = \frac{\text{TC}}{\text{NS}} \]
Where:
Cost per serving is a way to understand how much each portion of a meal costs to produce. This is particularly useful for restaurants, caterers, and anyone who needs to budget for food costs while planning meals. It helps in setting appropriate prices for dishes to ensure profitability while providing value to customers.
Let's assume the following values:
Using the formula:
\[ \text{CPS} = \frac{\text{TC}}{\text{NS}} = \frac{50}{5} = 10 \]
The Cost Per Serving (CPS) is $10 per serving.