A baker uses dried skim milk that contains 3.0% moisture and costs $1.16 per lb, which on a moisture free basis would be $1.20 per lb. If liquid skim milk containing 90.5% water costs $1.60 per gallon (8.64 lbs), what would be the comparative cost of 1lb. dry solids from the liquid milk?

2 answers

Here is how the 3% stuff is calculated.
3% moisture = 97% milk; therefore,
1.16 x (100%/97%) = 1.20

So wouldn't we do the liquid milk the same way?
1.60 x (100/9.5) = ??/8.64 lbs.
So the cost per 1 lb is xx.
so you have to find the percentage moisture loss