Beer Yield Calculation

a) What is your yield if you serve 16 oz beers?

b) You serve 10 oz beers for $5 per beer. How much revenue will you generate from a single keg? How much is the contribution margin for a single keg?

a) Yield Calculation for 16 oz Beers

b) Revenue and Contribution Margin Calculation for 10 oz Beers

Are you curious about how much beer you can get from a keg and the revenue it can generate for your business? Let's break it down!

Yield Calculation for 16 oz Beers:

When serving 16 oz beers, the yield of a keg can be calculated by dividing the total number of ounces in a keg (1,984 oz) by the size of each beer (16 oz).

Yield = 1,984 oz / 16 oz = 124 beers

So, the yield of a keg when serving 16 oz beers is 124 beers.

Revenue and Contribution Margin Calculation for 10 oz Beers:

When serving 10 oz beers at $5 per beer, the revenue generated from a single keg can be found by multiplying the number of beers in a keg (yield) by the price per beer.

Revenue = 124 beers * $5 = $620

Therefore, the revenue generated from a single keg when serving 10 oz beers is $620.

Additionally, the contribution margin for a single keg can be calculated by subtracting the cost of the keg ($75) from the revenue generated.

Contribution Margin = $620 - $75 = $545

By understanding the yield and revenue calculations, you can optimize your business profitability when serving different size beers from a keg. Cheers to a successful beer business!