Question

If your restaurant serves 50 bowls of French onion soup daily and each serving has 8 ounces of onion per portion. Do you think it would be better to purchase whole onions at $1.99 per pound and cut them yourself or purchase pre sliced onions at $2.99 per pound. Explain your rationale using a cost and portion argument

Answer 1

The second option saves time and cleaning elements, and it only costs 1.5 times the cost of the other option, so that one is better.

Which option is better?

We know that every day you sell a total of 50 bowls, each one needs 8 oz of onion, this means that you need:

50*8 oz = 400 oz

So you need 400 ounces of onion per day.

If you buy at $1.99 per pound (1 lb = 16 oz)

Then the cost per ounce is:

c = $1.99/16

And the cost of 400 ounces is:

C = ($1.99/16)*400 = $49.75

In the case of the pre-sliced onions, the total cost would be:

C' = ($2.99/16)*400 = $74.75

So in the first case, each portion costs:

$49.75/50 = $0.995

And in the second case:

$74.75/50 = $1.495

So the cost in the second case is around 1.5 times the cost in the first case, with the advantage that you don't loose any time by cutting the onions (this is time of your employees, also you clean less, so the cost in cleaning materials is reduced).

So the extra cost is returned by the extra time and savings in cleaning elements, thus, the second option is better.

If you want to learn more about costs:

https://brainly.com/question/25109150

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