Baking Price Calculator

Formula

The formula to calculate the Baking Price (BP) is:

\[ \text{BP} = \frac{\text{BC}}{1 - \frac{m}{100}} \]

Where:

$\text{BP}$ is the baking price ($)
$\text{BC}$ is the baking costs ($)
$m$ is the target margin (%)

What is Baking Price?

The baking price is calculated by taking the total baking costs and dividing it by 1 minus the target margin. This ensures that the desired profit margin is achieved when the baked goods are sold. Understanding the baking price helps in setting appropriate prices for products to ensure profitability while providing value to customers.

Example Calculation

Let's assume the following values:

Baking Costs (BC) = $50
Target Margin (m) = 20%

Using the formula:

\[ \text{BP} = \frac{50}{1 - \frac{20}{100}} = \frac{50}{0.8} = 62.50 \]

The Baking Price (BP) is $62.50.