Figuring Out Costs

Business By ApplePomme Updated 29 Sep 2010 , 4:32pm by jason_kraft

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ApplePomme Posted 29 Sep 2010 , 4:20pm
post #1 of 2

I'm trying to break down the costs I have to make cakes, cookies and cupcakes. This is probably a less-than-intellegent question, but when figuring out your own costs, did you just figure out how many portions (say, cups of flour in a 11lb bag) you could get out of each unit of ingredients and then add each portion cost together?

Next, many things are sold by weight but called for by cup/tsp in a recipe. How do you adjust for that? For example, my bag of flour is 5Kg (11lbs), but the NFSC recpie calls for 6c. How would I calculate that? Are there 4 Cups of flour in a pound (like there's ~4 cups of icing sugar in a pound)? I don't have a scale...

Any suggestions would be SO appreciated! Thank you.

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jason_kraft Posted 29 Sep 2010 , 4:32pm
post #2 of 2

This site should help with cups/pounds conversion:

I find it easiest to calculate the price per ounce for all our ingredients and store them in an Excel spreadsheet. If you also include calculations for converting ounces to cups in the spreadsheet, it's pretty easy to calculate ingredient costs just by plugging in the numbers from each recipe.

When calculating costs, don't forget to include the cost of packaging and the hourly cost of your labor (we use $20/hour). For incorporating fixed costs such as licensing fees and liability insurance, you can divide the yearly charge by the estimated number of orders you fill per year.

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