OCCI Student Blogs

Lately we've been having to cost formulas for the Iron Baker project.  To do this we need a formula with exact measurements and prices for each ingredient.  When we have this information we are able to find out the cost per portion, cost per batch and the selling price.

Here is the basic math on it:

Price of container / number of units in container = price per unit

your next step is to multiply

price per unit x ingredient amount = price of ingredient amount

Remember that however the unit is expressed in the formula is how it needs to be figured in your math.  so if your recipe calls for 14 ounces of butter you need to divide the price of a box of butter by how many ounces are in it not the number of pounds.

Here is an example of bread flour in a baguette formula:

The formula call for 10 ounces of bread flour

the cost of a 50 pound bag of harvest king bread flour is $18.08

there are 16 ounces in a pound so we multiply 16 x 50 to find out how many ounces are in the bag

16 x 50 = 800 ounces.  Now we can find the price per ounce

$18.08 / 800 oz = $0.0226 per ounce

the formula calls for 10 ounces so

$0.0226 x 10 oz = $0.226

We now know that it costs $0.226 for the 10 ounces of flour in the baguette formula.  We would then figure out the cost for the rest of the ingredients and add them up to find the cost of the batch. When you have the cost of the batch you can divide that price by how many loaves of bread it makes to find the cost of each loaf.

Here is an example of formula costing that I have made up for the Iron Baker project

Menu Item _MACARONS__ Number of Portions _100_
ize _.25 OZ__ Cost per Portion_$0.097364_ Selling Price_$0.65_ Food Cost %_15_