2.3 True cost of ingredients

When calculating the true cost per kilogram, the purchase price is divided by the yield factor (100% minus the yield-loss percentage).

Example: If the kilogram price of meat is ISK 1,800 and yield loss during processing is 30% (yield factor 70%, or 0.70), the calculation is: ISK 1,800 / 0.70 = ISK 2,571 per usable kilogram.

If carrots cost ISK 120 per kilogram and yield loss is 15% (yield factor 85%, or 0.85), the true cost is ISK 120 / 0.85 = ISK 141 per kilogram.