• C is the cost to produce one keg ($) • M is the desired margin per draft (%) ## How to Calculate Draft Price? The following example problems outline how to calculate Draft Price. Example Problem #1: 1. First, determine the cost to produce one keg ($).
1. The cost to produce one keg ($) is given as: 250. 2. Next, determine the desired margin per draft (%). 1. The desired margin per draft (%) is provided as: 40. 3. Finally, calculate the Draft Price using the equation above: DP = ( C/40) / (1-M/100) The values given above are inserted into the equation below: DP = ( 250/40) / (1-40/100) = 10.416 ($/16oz draft)

Example Problem #2:

For this problem, the variables needed are provided below:

cost to produce one keg (\$) = 700

desired margin per draft (%) = 50

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

DP = ( C/40) / (1-M/100) = ?