Answer: $26.80
Explanation:
The standard portion cost is usually calculated as the cost of ingredient in a standard recipe divided by the number of portion produced by the recipe. That is :
Standard portion cost = cost of ingredients ÷ Number of portions produced by recipe
Standard portion cost = $0.67
Number of portions produced by recipe = 40
Therefore,
Cost of ingredient = (standard portion cost × number of portions produced by recipe)
Cost of ingredient = $0.67 × 40
Cost of ingredient = $26.80
