Chefs: I am hoping someone can help me here. Right now I am a chef of a production kitchen that produces food for multiple restaurant locations. My kitchen is not suppose to make a profit but to only to break even. I am budgeted for a 35% food cost and the restaurants are budgeted for a 28% food cost. So my question is I want to come up with a formula that includes my cost of ingredients plus enough to cover my food cost to find a transfer price that I would charge the restaurants. Then I would like to help the restaurants make sure they are selling the product for the proper price to cover their food cost. What I have so far is this: Cost of food x 35% + (cost of packing materials/ # of pieces)=adjusted transfer price then I have: (Adjusted transfer price x # of pieces per menu unit) + condiments cost= adjusted price x 28%= minimum selling price For some reason this just does not look right to me. Am I over thinking it?