Function Cost
1. Stating the problem:
We are tasked to calculate for a function the following:
i. Food cost per portion
ii. Selling price per portion (head)
iii. Total charge for the function
2. Calculate total food cost:
Food items and cost:
- Bream: 15 kgs \(\times 17 = 255\)
- Ox-tail: 20 kgs \(\times 10 = 200\)
- Chicken: 10 kgs \(\times 52 = 520\)
- Rice: 10 kgs \(\times 23 = 230\)
- Vegetables: 10 kgs \(\times 18 = 180\)
Total food cost = \(255 + 200 + 520 + 230 + 180 = 1385\)
3. Calculate labor costs:
- Two chefs for four hours at 150/hr each: \(2 \times 4 \times 150 = 1200\)
- Two waiters for four hours at 45/hr each: \(2 \times 4 \times 45 = 360\)
- Florist cost: 850
- Public address system: 740
- Comedian performing for 30 minutes at 200/20min:
Rate per minute = \(200 / 20 = 10\), so 30 min cost = \(30 \times 10 = 300\)
4. Calculate total direct costs:
\(1385 + 1200 + 360 + 850 + 740 + 300 = 4835\)
5. Calculate overheads using percentages on sales (denote sales as \(S\)):
Payroll staff cost = 6% of sales = \(0.06S\)
General overheads = 10% of sales = \(0.10S\)
Profits = 22% of sales = \(0.22S\)
6. Total costs plus overheads and profit equal sales:
\(S = 4835 + 0.06S + 0.10S + 0.22S\)
\(S = 4835 + 0.38S\)
\(S - 0.38S = 4835\)
\(0.62S = 4835\)
\(S = \frac{4835}{0.62} = 7806.45\)
7. Calculate food cost per portion:
Assuming number of portions = sum of kg food converted to portions; total kg = 15+20+10+10+10 = 65 kg
If standard portion size is not given, assume 1 kg per portion for calculation simplicity.
So, number of portions = 65
Food cost per portion = total food cost ÷ portions = \(1385 / 65 = 21.31\)
8. Selling price per portion (head):
Selling price = total sales ÷ portions = \(7806.45 / 65 = 120.10\)
9. Total charge for the function:
Total charge = sales = 7806.45
Final Answers:
- Food cost per portion = K21.31
- Selling price per portion = K120.10
- Total charge for the function = K7806.45