Enter the total cost of materials and labor to make the cake ($) and the desired margin (%) into the Cake Price Calculator. The calculator will evaluate and display the Cake Price.
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Cake Price Formula
The following formula is used to calculate the Cake Price.
CP = C / (1-DM/100)
- Where CP is the Cake Price ($)
- C is the total cost of materials and labor to make the cake ($)
- DM is the desired margin (%)
How to Calculate Cake Price?
The following example problems outline how to calculate Cake Price.
Example Problem #1:
- First, determine the total cost of materials and labor to make the cake ($).
- The total cost of materials and labor to make the cake ($) is given as: 7.50.
- Next, determine the desired margin (%).
- The desired margin (%) is provided as: 75.
- Finally, calculate the Cake Price using the equation above:
CP = C / (1-DM/100)
The values given above are inserted into the equation below:
CP = 7.50 / (1-75/100) = 30.00 ($)
Example Problem #2:
For this problem, the variables needed are provided below:
total cost of materials and labor to make the cake ($) = 8.00
desired margin (%) = 25
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
CP = C / (1-DM/100) = ?
