How Do You Calculate The Cost Of Baked Goods?
Calculating the cost of baked goods involves determining the cost of ingredients, labor, and overhead expenses such as rent, utilities, and equipment depreciation. First, list all of the ingredients that go into a recipe and their individual costs. Next, determine the labor cost by calculating the hourly wage of the baker and estimating the time spent on each batch of baked goods. Finally, add the overhead expenses such as rent and utilities and divide the total by the number of servings to determine the cost per unit. This cost can then be used to set a selling price that covers all expenses and is competitive in the market.