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A hospital foodservice places an order for 50 pounds of potatoes. The AP price is $12 for 50 pounds. After peeling, chopping, and boiling, the EP is 38 pounds. What is the EP cost per pound?

A. 99¢
B. 32¢
C. $1
D. $2

Answer :

Final answer:

The EP (edible portion) cost per pound is calculated by dividing the as purchased cost by the post-processing weight. Using the figures provided, the EP cost per pound for the potatoes is calculated as $12/38 pounds, which equates to approximately 32¢ per pound.

Explanation:

In order to determine the EP (edible portion) cost per pound, we must first understand what the AP (as purchased) cost is. This refers to the price paid for the product before any processing like peeling or chopping. In this case, the AP cost for 50 pounds of potatoes is $12. After processing, the weight of the potatoes drops to 38 pounds which we label as the EP.

To calculate the cost per pound in its EP, we divide the AP cost by the EP weight: $12/38 pounds. This calculation results in an EP cost of roughly 32¢ per pound, therefore the correct answer would be b. 32¢. This reflects the cost of the food that is actually edible and will be served.

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