I can't see your pictures well enough to say. Pricing a cake is nicely explained below by Jason Kraft. I put part of it in bold in order emphasize that market prices are what actually determines your price. But that doesn't mean that you compare prices of cheap cake ladies, you will have to discern the difference. It can be best to avoid home bakers' prices and look more at prices by brick and mortar bakeries with comparable work. It's very tempting to undercharge. It's the easier way to go into "business" because you don't have to really learn what cakes should sell for, find the right customer and muster the courage to ask a fair price.
Keep in mind what you're going to charge for a cake is probably more than you can afford to pay for one, so your subjective ideas of "about what it should cost" are going to work against you.
But if you charge too little, you do a disservice to yourself and others who are trying to put food on the table by selling cakes.
To answer you specifically, I think $40-65 is not even in the ballpark for a 2 tier cake. Way too low. But I can't see the level of detail and whether the work is clean. I'm in your state and I average $225-$275 for a two tier 5-8, 32 serving cake.
Speaking of your state, beware of organized cake groups. I know of two Texas groups whose members pat each other on the back for undercharging. These groups are like the blind leading the blind.
By Jason: Your profit margin is determined by market value both on the demand side (what the customer is willing to pay for your product) and the supply side (what competitors are charging). To figure out your hourly wage, you can look at cost of living and salary surveys to see what market wages are, but the market value of your product factors in here as well, as does your efficiency.
For example, let's say a cake has $50 in ingredient costs, $30 in allocated overhead, and will take 8 hours start to finish of hands-on time. Salary surveys indicate that cake decorators average around $15/hour, so a starting point for your cost could be $50 + $30 + ($15 * eight) = $200.
Now you factor in market research and see that your competitors sell a similar cake of equivalent quality for $250, so you can add another $50 to match that price and end up with a healthy 25% markup for profit (15-45% tends to be the norm).
If your market research tells you that a similar cake sells for $200, you may be able to adjust your wage downward slightly to $12, leading to a cost of $50 + $30 + ($12 * eight) = $176. To match that $200 price your markup would be 14%, which is on the low side.
However, as your skills improve you may get more efficient over time, so the same cake six months from now might take you 6 hours instead of 8, resulting a new cost of $50 + $30 + ($12 * 6) = $152, and a new markup of 31% to hit the $200 price point. Alternatively you could bump your wage up to $15, so the cost would be $170 with an 18% markup. Your markup will also increase over time as you start filling more orders, since the allocated overhead for each order drops if there are more orders to carry the weight of your total overhead.
If market research tells you that this cake is typically sold for $100 in your area, it's time to shift to a new market, a new product, or both. Or just keep cake decorating as a hobby.