how can the following be done using various different costing methods? Compare and contrast: To calculate the
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how can the following be done using various different costing methods? Compare and contrast: To calculate the cost of making one oatmeal cookie, we need to consider all the costs involved in the manufacturing process, as well as the cost of ingredients. Let's break it down:
Manufacturing and Equipment Costs:
Kitchen equipment: $
Rent and utilities: $
Packing equipment: $
Total manufacturing costs: $
Ingredient Costs: $
Legal and Regulatory Costs:
LLC Filing Fee: $
Business License Cost for Fairfax County, VA: $
Annual Registration Fee: $
Total Legal and Regulatory Costs: $
Payroll Costs:
Assuming youll pay five employees $ an hour, six hours a day, seven days a week.
x hours a week
x hours a week
$ x $ a month
Total Costs:
$manufacturing
$ingredients
$legal and regulatory
$payroll
Total Costs: $
Total Costs Kitchen Equipment Legal and Regulatory $
Now, let's calculate the profit margin per cookie. If the cookies are sold for $ each, we need to subtract the cost per cookie from the selling price to determine the profit per cookie.
Profit per cookie Selling price per cookie Cost per cookie
Since the total cost is $ and the number of cookies we can produce depends on the size of the batch and the output of the commercial oven, we'll need to estimate the number of cookies produced per batch.
Let's say a batch produces cookies. We can calculate the cost per cookie as follows:
Cost per cookie Total costs Number of cookies
Cost per cookie $
Cost per cookie $
To make a profit, you need to set a selling price higher than the cost per cookie. Let's calculate the price you should charge per cookie to make a profit.
If you wish to make a certain profit margin, say x on each cookie, you can use the following formula:
Selling Price Cost per cookie x x
For example, lets say we wish to have a margin.
Selling Price Cost per cookie x
Selling Price $ x
Selling Price $
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: