How do I calculate recipe cost?

To calculate recipe cost, add up the cost of each ingredient used. Divide the package cost by package size to get cost per unit, then multiply by the amount used in your recipe. Add labor and overhead costs for the total recipe cost.

What profit margin should I use?

Most bakeries aim for a 50-100% profit margin on baked goods. This means if your cost per serving is $2, you would charge $3-$4. Adjust based on your market, competition, and target customers.

Should I include labor costs?

Yes! Your time is valuable. Calculate labor cost by multiplying hours spent by your desired hourly rate. Even home bakers should factor in their time to ensure profitability.

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