Hello pls help food cost

[paperclip]

Hello I am no good with math so I can't explain how this formula works as I'm going to start to help sell my sister's empanadas as a side business. Would it be possible to explain what this formula does? It was given to her by a chef to help with pricing her food: cost of food per piece divided by .30.

For example, If it costs her 1.50 in ingredients to make 1 empanada, with the formula above she should charge $5 for the empanada. 1.50/.30 = 5.00. Would it be possible to know in plain English what is happening and why this formula works? Why are we diving the cost of ingredients by .30? Does anyone have a clue what .30 is? Thank you in advance.

 

[Harry_the_cat]

\(\displaystyle .30 = \frac{3}{10}\)

Dividing by \(\displaystyle \frac{3}{10}\) is the same as multiplying by \(\displaystyle \frac{10}{3}\) or \(\displaystyle 3.333\) (rounded).

It make more sense to me to talk of a figure to multiply by, rather than divide by.

So if the cost is $10, the price should be $10 x 3.333 = $33.33 (using the chef's markup).

 

[Romsek]

It's obviously a number the chef came up with from experience. I doubt it was ever calculated.

Factors that would go into pricing food would be
food cost
any utility costs associated with cooking and storing the food
rent of the facility
wages of the workers
government fees
profit
etc.

 

[paperclip]

Thank you Romsek and Harry. It makes more sense that the .30 was a number that the chef came up with.