You are preparing 12-ounce rib-eye steaks from a prime beef rib. The purchase weight is 22 pounds. Price per pound is $3.85. Waste products (blood and fat) come out to 3 pounds. Secondary cuts are 4.8 pounds at $.85 per pound. What is the cost per servable pound?

Question

Quizplus · Accepted Answer

The cost per servable pound is calculated by subtracting the waste and secondary cuts from the purchase weight, then adding the cost of the secondary cuts back at their lower price. The total cost of the prime beef rib is 22 pounds * $3.85 = $84.70. The servable weight is 22 pounds - 3 pounds (waste) - 4.8 pounds (secondary cuts) = 14.2 pounds. The cost of the secondary cuts is 4.8 pounds * $0.85 = $4.08. The adjusted total cost is $84.70 - $4.08 (since we initially included the secondary cuts at the higher price) + $4.08 (adding them back at their actual price) = $84.70. Therefore, the cost per servable pound is $84.70 / 14.2 pounds = $5.96.

You Are Preparing 12-Ounce Rib-Eye Steaks from a Prime Beef