Rosies secret family recipe for five gallons of soup is as follows:

MATERIAL ITEMS: COST

Six gallons of filtered water $1.00 per five-gallon jug

Three pounds of chicken, breasts and thighs, ground $.69 per pound for thighs; .$99 for breasts; the ratio of breast to thigh meat is approx.. 2:1: two pounds of breast meat to one pound of thigh meat.

One pound of carrots .$39/ pound

Five stalks of celery, chopped $.79 per stalk, average eight stalks per bunch

Three cups of dried egg noodles $1.00 for a 36 oz. bag of noodles

One ounce of seasoning $2.00 per pound

Salt and pepper about $.15 each

Condiments (msc. Seasonings) about $.50

Packaging (for to go orders):

8 oz container with lid $.75 for both

Spoons & napkins average $.25 per order (whether take out or eat-in)

12 oz container with lid $.90 for both

LABOR

Time to grind chicken 15 minutes for five pounds

Time to chop celery 15 minutes for whole bunch

Time to chop carrots 10 minutes per pound

Time to cook the chicken 20 minutes total

Packing time average 5 minutes

Time to assemble ingredients and put in soup 15 minutes per batch (5 gallons)

Time to reorder groceries 1 hour per week

Time to count inventory and determine needs for following week 2 hours per week

Counter staff (for serving eat-in customers) 15 minutes per customer

Cleaning work 2.5 hours per day

To-go time 10 minutes per order

Time to complete accounting and tax requirements 3-5 hours per week

OVERHEAD

Utilities $800 per month

Rent on building $3,200/month

Depreciation of kitchen equipment $700/month

Depreciation of office equipment $1,000/month

Other info:

The building which houses the restaurant consists of two floors with the restaurant and storeroom on the first level and an office and office storage area on the second level. The square footage is 2,000 for the upper-level office and 100 for the storage area; the square footage for the lower level is 1,800 for the restaurant and 700 for the storeroom.

There are three workers: Rosie, who takes a salary of $5,000 per month and two worker paid $20/hour. Rosie orders the groceries and takes inventory. The two hourly employees serve the customers, pack the soup, prep the ingredients for the soup, cook the chicken, and clean up. Rosie makes the soup and oversees the restaurant. Rosie is also the cashier. The hourly workers work 40 hour weeks.

Rosies sells the 8oz cup of soup for $3.99 and the 12 oz for $5.49. On average Rosie sells 5,500 cups of soup a month: 3,000 of the 8 oz and 2,500 of the 12 oz. Rosies has the capacity to make 6,000 cups of soup a month-in the same ratio as noted here (3,000:2,500).

REQUIREMENTS:

1. What is the full product cost for a) and 8 oz cup and b) a 12 oz cup