How to calculate the cost per servable pound of a food product?

The cost per servable pound of a food product can be calculated by dividing the total cost of the product by the total number of servable pounds in the product.

The total cost of the product includes the purchase price of the ingredients, as well as any processing, packaging, and storage costs.

The total number of servable pounds in the product is the total weight of the product divided by the serving size.

For example, if a food product costs $10 and contains 10 servings, each weighing 4 ounces, then the cost per servable pound would be:

$$ Total Cost per Pound

=\frac{​Purchase Price​}{​Total No. of Servings \times Serving Size in Pounds​}

$$

$$ Total Cost per Pound

=\frac {10 \div 10 \times 0.25}

$$

$$ Total Cost per Pound

=\frac {1}{2.5} = 0.4 $ $ (Approx.)

Therefore, the cost per servable pound of this food product would be $0.40.