Labels and Unit Pricing

2.02 Students will:

Examine labels for consumer information.

Calculate unit pricing to make buying decisions.

Label InformationFDA requires specific information on all prepackaged foods.

Brand Name IngredientsNutritional Information Directions

Product Weight Manufacturer, Other Consumer Information

Product Pricing Bar Code-UPC

Symbol

Trademark-name, logo

Trade secret-recipe, formula

Review & FYI: Intellectual Property

• Trade Secret -recipe, formula

• Trade mark - logo, name, symbol

• Copyright -literature, music, software plays, lyrics, artworks

• Patents - unique invention or process

Violations (Infringement) of intellectual property rights are federal offenses punishable by fines and/or jail time.

Use this label to answer questions on next slide.

Questions1. What is the product?2. What is the weight of the contents of the product?3. What tells you that the product is safe to eat and meets Federal

standards?4. What is the serving size stated on the label?5. If one person ate 2 servings, how many grams of fat would be

consumed?6. How many milligrams sodium are contained in one serving?7. How many grams of fiber consumed in 2 servings?8. What percentage of the Daily Values of vitamin A are contained in

one serving?9. On what type of diet is the Daily Value percentage based?10. What are the directions for using a microwave to prepare this

product?

Brainstorm ?

• What factors affect prices of goods and services?

• List items that affect a product’s cost

Pricing-What factors affect prices of goods and services?

• Ingredients, materials used to make product

• Packaging• Distribution (movement)• Labor • Equipment, machinery• Facilities- purchase or rent

buildings/space• Research and Development

• Payroll Taxes- FICA, unemployment

• Taxes- business income• Advertising• Sales Commissions• Shoplifters ? How do

they cause prices to rise? • Profit for company• Insurance- property,

workers comp, health, liability

Unit Pricing

• To comparison shop and find the most economical product (lowest price per unit), use unit pricing.

• Need to know:– Price of product– Weight/measure of product

• To calculate Unit Price (price per unit) Total Cost divided by Measurement$4.00 / 32 oz = 12.5 cents per ounce

UNIT PRICINGHints:• Be sure all weights

are in the same unit (ounces, pounds, liters, etc.)

• Remember to divide the price by the weight of each item.

• Carry decimal to 3 places, round up to the nearest cent (can’t spend a part of a penny)

Unit Pricing

• Tim likes strawberry jelly. Which product would be the most economical buy?– Product A 20 oz @ $1.15– Product B 8 oz @ $1.04– Product C 10 oz @ $0.99

• Price / unit of measure = unit price

Unit Pricing Answers• Product “A” Unit Price = $1.15/20 = $.0575

– Round up to next cent $.06

• Product “B” Unit Price = $1.04/8 = $.13

• Product “C” Unit Price = $.99/10 = .099– Round up to next cent $.10

Product A would be the most economical buy at $0.06 per ounce.

Best Buy versus Most Economical?When would Product “A” NOT be the best buy?

Best Buy vs. Most EconomicalA. If Product A is a brand you don’t likeB. If the quantity is so large that you cannot store properly

or would spoil/get stale before using.C. If product wrapping or other “value” was important

Product AProduct B Product C

Practice Unit Pricing1. Laundry Detergent Price Per Unit Most Economical

90 Ounces @ $6.65 ___________ ____________________48 Ounces @ $4.50 ___________

2. Jar of Peanut Butter

32 Ounces @ $2.45 ___________ ____________________20 Ounces @ $1.75 ___________16 Ounces @ $1.35 ___________

3. Spaghetti Sauce 16 Ounces @ $1.95 ___________ ____________________32 Ounces @ $3.85 ___________48 Ounces @ $5.50 ___________

4. Milk* note units of measure

1 Quart @ $1.25 ___________ ____________________1 Gallon @ $3.95 ___________

5. Margarine*note units of measure

8 Ounces @ $.75 ___________ ____________________1 Pound @ $1.45 ___________

Quote - Choices

“By the choices and acts of our lives, we create the person that we are and the faces that we wear.

By the choices and acts of our lives we give to the world wherein our lives are lived, hoping that our neighbors will find our contributions to be of worth, and hoping that the world will be a little more gracious for our time in it.”

• KENNETH PATTON Exercise your rights to choice!