• C is the total cost of materials and labor to make the cake ($) • DM is the desired margin (%) How to Calculate Cake Price? The following example problems outline how to calculate Cake Price. Example Problem #1: 1. First, determine the total cost of materials and labor to make the cake ($).
1. The total cost of materials and labor to make the cake ($) is given as: 7.50. 2. Next, determine the desired margin (%). 1. The desired margin (%) is provided as: 75. 3. Finally, calculate the Cake Price using the equation above: CP = C / (1-DM/100) The values given above are inserted into the equation below: CP = 7.50 / (1-75/100) = 30.00 ($)

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) = ?