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You are a chef in a restaurant here in San Francisco and are considering buying pre-cut vegetables for your mirepoix, which you use in several

You are a chef in a restaurant here in San Francisco and are considering buying pre-cut vegetables for your mirepoix, which you use in several menu items. Do a make-or-buy analysis for each of the following vegetables to see if it will be cheaper to buy the pre-cuts than prepping them in-house.

You will have to take labor costs into account when calculating the cost per pound for the vegetables prepped in-house. Assume you pay your prep cook a wage of $15.00 per hour. You need to estimate the amount of time it will take for your prep cook to prep the given amount of each vegetable. In this assignment, we will only be considering the direct hourly cost of labor (hourly wage) and not the other indirect costs (Social Security, labor taxes, sick pay, etc.)

If you have the vegetables at home, you could even conduct a test by timing yourself peeling and cutting the vegetables to get an idea of how long it might take.

Vegetables Purchase Unit Pack Purchase Unit Pre-cut price for 1/4" dice
Jumbo Onions sack 50 pounds $15.90 $2.65 lb.
Celery case 24 counts $18.60 $2.90 lb.
Jumbo Carrots sack 25 pounds $13.00 $2.34 lb.

Answer the following questions:

  • What is the cost (including labor) for 3 # of each of the vegetables cut into " dice
  • What is the cost per pound including labor to do the work in-house?
  • Could you save money by buying some of the vegetables pre-cut? Which ones?

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