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)** = ?**