Surviving in this complicated world has urged a lot of people to find ways to earn for a living. This created entrepreneurs or business-minded people; they think of ways to utilize and maximize the raw materials available. To be able to earn a profit, a business should, as much as possible, lessen the cost of production and the cost of raw materials used. Cost is an expense incurred in acquiring or making a product. In order to produce profit, one must do a thorough analysis of the costs incurred during production. The costs identified are the basis of pricing a product. The cost determines the market value or the market price of a product and thus, cost analysis is a crucial step of any business to be able to measure profitability. As one author said, “Bottom-line, the purpose for the preparation of a Cost/Benefit Analysis is to allow a company to “Look before you leap.” (Bryce, T. 1998-2008).
Cost Analysis of Eight Burgers
To introduce computing for cost, a sample was given to have an idea of how the cost of a simple six ounce burger was derived. Suppose you’re going to invite friends over and you estimated you will make eight hamburgers. The ingredients and costs are shown at the template below:
Hamburger Cost Analysis
List of ingredients
Servings per package
Cost Per Serving
Total cost in dollars
8 buns per package
2005 Cardean Learning Group LLC.
The ingredients for eight hamburgers bought from the store cost a total of $12.99. If you noticed, not all the ingredients will get entirely consumed like the pickles, ketchup, and mustard. The cost of each ingredient actually used was derived by dividing the package cost by the number of servings per package, and the result will be multiplied with the number of servings needed. So the actual cost of the eight hamburgers is $10.98, or $1.36 per one, six-ounce, hamburger. It is interesting to know too, the nutritional value of the ingredients of the hamburger. The question is, does a six-ounce hamburger have the all the six basic nutrients needed by the body? Let us find out. First nutrient is carbohydrates. The buns are made from wheat which gives carbohydrates. Mustard came from mustard wheat which also gives a form of carbohydrates. The next nutrient is protein, which the ground beef is very rich at. Beef also has fat content too, which helps in gaining back memory loss. Third nutrient is the mineral. One can be sure to get minerals from vegetables and fruits, and there’s lettuce, pickles and tomato in a burger. Take note that a tomato is also rich in lycopene and potassium. Water is also present in tomatoes and pickles and is one of the six basic nutrients. Ketchup and mustard have water content too. Ketchup and mustard have other ingredients in it that gives other forms of nutrients too.
One can say then that a hamburger is a complete meal based on the nutritional content of it. In analysis, for $1.36, one can get nourished with the six basic nutrients recommended for diet. Who wouldn’t want a hamburger? This can be a basis for a lot of people who would like to sell hamburgers one day because of its marketable value.
Bryce, T. 1998-2008. The Elements of Cost/Benefit Analysis. Information Technology
Toolbox, Inc. May 28, 2008. [http://blogs.ittoolbox.com/pm/irm/archives/the-
Hamburger Cost Analysis. 2005. Cardean Learning Group LLC.
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