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A chef locates a pre-made tuna salad that is nearly identical to the one she makes from scratch in her sandwich shop. To make it from scratch, an $8.25/hour employee needs 20 minutes to prepare the tuna salad. The ingredients cost $12.18 and yield 10 four-ounce servings. The chef can purchase the pre-made tuna salad at $26.99 for a 5# tub. Calculate the cost per portion for the scratch-made and the premade versions. If cost were the only factor, should the chef make or buy this product?

User Amin Adel
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Correct question

A chef locates a pre-made tuna salad that is nearly identical to the one she makes from scratch in her sandwich shop. To make it from scratch, an $8.25/hour employee needs 20 minutes to prepare the tuna salad. The ingredients cost $12.18 and yield 10 four-ounce servings. The chef can purchase the pre-made tuna salad at $26.99 for a 5 pound tub. Calculate the cost per portion for the scratch-made and the premade versions. If cost were the only factor, should the chef make or buy this product?

Answer:

If cost were the only factor, the chef should not make version of the tuna salad from scratch because it is expensive that the premade version

Explanation:

For tuna: Made from scratch

The ingredients cost $12.18 and yield 10 four-ounce servings.

10 servings = $12.18

1 serving = x

10 × x = 1 × $12.18

x = $12.18/10

x = $1.218

Hence, 1 four ounce serving cost $1.218

The chef can purchase the pre-made tuna salad at $26.99 for a 5# tub.

5 pound tub salad = $26.99

1 pound tub of tuna salad = x

5 × x = 1 × $26.99

x = $26.99/5

x = $5.398 per pound

Converting to ounces

0.0625 pound = 1 ounce

5 pound = x

x = 5/0.0625

x = 80 ounces

80 ounces of tuna salad = $5.398

4 ounces of tuna salad = x

80 × x = 4 × $5.398

x = 4 x 5.398/80

x = $0.2699

Hence, 1 4 ounce pre made tuna salad cost = $0.2699

Hence, the cost per portion for the scratch-made is $1.218 per 4 ounces servings and the premade versions is $0.2698 per 4 ounce servings

If cost were the only factor, the chef should not make version of the tuna salad from scratch because it is expensive that the premade version

User Grambot
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