Using the bone-in ham example, what is the invoice cost to serve 85 pounds of cooked, sliced ham when AP is 18 pounds with 44% waste and a price of $1.83 per AP pound?

Using the bone-in ham example, what is the invoice cost to serve 85 pounds of cooked, sliced ham when AP is 18 pounds with 44% waste and a price of $1.83 per AP pound?

• A. $155.55
• B. $223.99
• C. $277.78
• D. $296.46

Answer: (D)

To compute the invoice cost, start by translating edible portion (EP) needs into as-purchased (AP) pounds, accounting for waste and unit size. Each bone-in ham provides 18 AP pounds, and 44% of that becomes waste, leaving 18 × (1 − 0.44) = 10.08 pounds of edible ham per ham. You need 85 pounds of cooked, sliced ham (EP). How many hams would that require? 85 ÷ 10.08 ≈ 8.43 hams. Since you must buy whole hams, round up to 9 hams. That means purchasing 9 × 18 = 162 AP pounds. With a price of $1.83 per AP pound, the invoice cost is 162 × 1.83 = $296.46. This is the amount billed for the required EP, given you buy whole hams. If you didn’t round up to whole hams, you’d compute about 151.79 AP pounds costing roughly $277.77, but that wouldn’t meet the 85 pounds EP requirement.

To compute the invoice cost, start by translating edible portion (EP) needs into as-purchased (AP) pounds, accounting for waste and unit size. Each bone-in ham provides 18 AP pounds, and 44% of that becomes waste, leaving 18 × (1 − 0.44) = 10.08 pounds of edible ham per ham.

You need 85 pounds of cooked, sliced ham (EP). How many hams would that require? 85 ÷ 10.08 ≈ 8.43 hams. Since you must buy whole hams, round up to 9 hams. That means purchasing 9 × 18 = 162 AP pounds.

With a price of $1.83 per AP pound, the invoice cost is 162 × 1.83 = $296.46. This is the amount billed for the required EP, given you buy whole hams. If you didn’t round up to whole hams, you’d compute about 151.79 AP pounds costing roughly $277.77, but that wouldn’t meet the 85 pounds EP requirement.