Hi Jason, my eyes aren't as good as they use to be , i'm taking it that is a cutting test they want you to do on some meat item. it's been years since I did any of this but,
Log the gross weightof pre-processed product and the amount you paid for the total piece or portion.
Log the net weight after processing.
Record your waste by subtracting the net weight from the gross weight.
Divide net weight into the total cost you paid for the untrimmed product.
Upon completing step 4, your net wholesale cost is revealed and serves as the basis of your pricing.
Is your percentage markup based on cost or selling price. Once you choose which you will be using to calculate, it is important you stick to the method you choose throughout all your calculations, or you will end up with faulty data.
Calculate percent markup based on cost. This is done by dividing the dollar markup by the cost. So, if the cost is $10, and the dollar markup is $5, you would take $5/$10 and get 0.5, or 50 percent. So your percentage markup based on cost would be 50 percent.
Calculate your percent markup based on selling price. This is done by dividing the dollar markup by the selling price. So, if your selling price is $15 and your dollar markup is $5, you would take $5/$15 and you would get 0.33, or 30 percent. So, your percentage markup based on selling price would be 33 percent.
Make sure you consistently use either cost of the product or selling price to find the percent markup on an item. Even though the cost, selling price, and dollar markup will always be the same, the percentage markup will be different depending on if you calculate it using selling price or cost. Using selling price will give you a lower percentage markup while using cost will give you a higher percentage markup.
