Menu cost calculator

How to Use the Menu Cost Calculator

1. Enter the name of your menu item in the "Item Name" field.
2. Input the total cost of all ingredients used in the item.
3. Specify the portion size of the item in ounces.
4. Enter the labor cost associated with preparing the item.
5. Set the overhead rate as a percentage of ingredient costs.
6. Click the "Calculate" button to see the results.
7. The calculator will display the cost per ounce, total item cost, labor contribution, and overhead contribution.

Working Principle

The calculator determines the cost of each menu item by considering:

• Ingredient Cost per Ounce: This is calculated by dividing the total ingredient cost by the portion size.
• Total Item Cost: This includes the cost of ingredients, labor, and overhead. The formula used is: (Ingredient Cost / Portion Size) × Portion Size + Labor Cost + (Overhead Rate × (Ingredient Cost / Portion Size) × Portion Size).
• Labor Contribution: This is simply the labor cost input by the user.
• Overhead Contribution: This is calculated as a percentage of the ingredient cost per ounce.

Example

Suppose you have a burger with the following details:

• Ingredient Cost: $5.00
• Portion Size: 8 oz
• Labor Cost: $2.00
• Overhead Rate: 30%

The calculator would output:

• Cost per Ounce: $0.625
• Total Item Cost: $8.50
• Labor Contribution: $2.00
• Overhead Contribution: $0.50

This means the burger costs $8.50 to make, with ingredients costing $5.00, labor contributing $2.00, and overhead contributing $0.50.