Final answer:
The EP cost per pound for the fish item, after accounting for a 30% waste during cleaning and filleting, is calculated to be $13.71.
Step-by-step explanation:
The question pertains to the calculation of the EP cost (Edible Portion cost) per pound for a fish item which a manager purchases for $9.60 a pound and encounters a waste percentage of 30% after cleaning and filleting. To calculate the EP cost per pound, we need to consider the fact that after the waste is removed, only 70% of the fish's weight is usable.
To find the EP cost per pound, you divide the original cost by the percentage of the product that is usable. Using the formula EP Cost = Original Cost per Pound / Usable Yield, where the usable yield is 1 - waste percentage, we calculate as follows:
EP Cost = $9.60 / (1 - 0.30) = $9.60 / 0.70 = $13.71
Therefore, the EP cost per pound for this fish item is $13.71.