Question: based on information below, what would be the profit per cookie if they were sold $ 6 per cookie? what price should i sell it

  

based on information below, what would be the profit per cookie if they were sold $6 per cookie? what price should i sell it to make a profit and what should i change? 1. Direct Materials (Ingredients):

Ingredient Costs: $2,000

 This represents the cost of all the ingredients required to make the oatmeal cookies, such as oats, flour, sugar, etc.

2. Direct Labor (Payroll Costs):

Weekly Payroll: $2,520 (might be incorrect)

 This is the cost of labor for one week. Assuming five employees are paid $15 per hour for six hours a day, seven days a week, the weekly payroll is $2,520. 

Monthly Payroll: $10,080 (might be incorrect, should reflect $15 per hour)

 Calculated by multiplying the weekly payroll by four (the average number of weeks in a month), this represents the monthly labor cost for the Mixing and Baking Process.

3. Manufacturing and Equipment Costs:

Kitchen Equipment: $5,000

 The initial cost of purchasing kitchen equipment necessary for the mixing and baking process, such as mixers and ovens.

Rent and Utilities: $3,000

 Monthly expenses for renting the production space and utilities required for the manufacturing process.

Packing Equipment: $500

 The cost of packing equipment, which includes materials and machinery for packaging the finished cookies.

Total Manufacturing Costs: $8,500

 The sum of kitchen equipment, rent and utilities, and packing equipment costs.

Total Direct Costs =  Direct Materials + Direct Labor

 =  $2,000      +  $10,080

Total Direct Costs =  $12,080 

Total Manufacturing Costs = Total Direct Costs + Manufacturing and Equipment Costs

=  $12,080      +  $8,500

Total Manufacturing Costs =  $20,580

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