Question

What is the variance in the number of orders? Product Analysis: Lamb Rack; Portion size = 12oz (EP); yield = 85% Opening Inventory (lbs.) 100 Ending Inventory (lbs.) 110 Purchases (lbs.) 200 # Sold 200 Meal selling price $18.95 Purchase cost (lbs.) $11.00

Answer 1

Step-by-step explanation:

From the information given:

The number of portion size that can be gotten from one pound = 16/12

= 1.33

Given that the yield is 85%, therefore, the actual portions can now be:

= 1.33 × 0.85

= 1.133

However, the average meat used = Purchase + opening inventory - ending inventory

the average meat used = 200 + 100 - 110 = 190

The number of orders from 190 lbs = 1.133 × 190 = 215.27

The number of orders from 190 lbs = 215.27

The real purchases = 200

Thus; variance = 200 - 215.27

variance = -15.27

Thus, approximately 15 orders are found to be lesser.