An order of potato skins is sold for $3.95. The individual items to prepare this order cost: $0.89 for the potato; $0.30 for cheese; $0.15 for sour cream; and $0.08 for bacon. An order of cheese fries is sold for $3.75. The items to prepare this order cost: $0.65 for the fries; $0.30 for cheese; and $0.35 for chili. How much more profitable are the potato skins per order?

3 answers

The 1st thing that you need to do is add up all the costs to make each item.
Potato Skins $3.95
potato = $.89
cheese = $.30
Sour cream $.15
Bacon = $.08
Total =$1.42

Cheese fries $3.75
fries $.65
cheese $.30
chili $.35
Total $$1.30

Potato Skins $3.95
cost of goods -$1.42
profit $2.53

Cheese fries $3.75
cost of goods $1.30
profit $2.65
Sales price to profit

potato skins $3.95/$2.53 =64%

Cheese fries $3.75/$2.65 = 71%

Cheese fries are more profitable
So what is the anwser? 1:30 or 2:45
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