Hi everyone! I have calculated my recipe costs but need to determine a figure for overhead costs. How would everyone recommend calculating this number?
Thanks so much!
AAdd up the annual costs for everything you spend on your business that's not ingredients or labor, then divide by the total number of orders per year. The resulting number is the overhead cost component of each order.
Thank you! This is my first year, so maybe I should estimate?
AYou should already have a pretty good idea of what your overhead costs are (since they are typically fixed), but you will need to estimate your sales volume based on the market research you have done in your business plan.