Calculating Costs (With Answers) Page 7
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28Step 2: Identify Revenue for Reimbursable Lunch WORKSHEET B
Revenue Per Reimbursable Lunch
Column A
+
Column B
+ Column C +
Column D
=
Column E
Meal
Cash
Federal
Commodity
State/Local
Total
Category
(Point of Sale)
Reimbursement
Value
Reimbursement
Revenue
Paid Meals
0.20
0.155
Free Meals
N/A
2.14
0.155
Reduced Meals
1.74
0.155
Adult Meals
N/A
N/A
*
QUESTION:
Does each student meal category (paid, free, reduced
) contribute equally
to the total revenue?
YES / NO
In this program example, paid meals do not contribute adequately to the total revenue
for breakfast or lunch.
Completed WORKSHEET B
Revenue Per Reimbursable Lunch
Column A
+
Column B
+ Column C +
Column D
=
Column E
Meal
Cash
Federal
Commodity
State/Local
Total
Category
(Point of Sale)
Reimbursement*
Value
Reimbursement**
Revenue
Paid Meals
1.50
0.20
0.155
$0.00
1.86
Free Meals
N/A
2.14
0.155
$0.00
2.30
Reduced Meals
0.40
1.74
0.155
$0.00
2.30
Adult Meals
2.25
N/A
N/A
N/A
2.25
CHALLENGE:
Knowing the status of breakfast and lunch revenue reveals whether the
Child Nutrition Program’s pricing structure is in balance. When all categories (except
adult meals) do not contribute equally to revenue, steps should be taken to equalize
them. Free and reduced priced meals should not subsidize the paid meals and vice
versa.
* Value uses the less than 60% free and reduced 2003 school lunch rates.
**State/Local reimbursement rates vary state to state
Calculating Costs - 7
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