Risk Assessment : Question 2
Analyze the risk associated with the cost of ingredients
c) Is there a price point past which you believe an increase in the price of sugar would become a risk to Alpine Cupcakes? Show evidence to support your conclusion.
Vanilla	Vanilla Cupcakes							Butter Cream Frosting						Total w/price change	Orig. Price	Difference	Price change Key
Ingredient	eggs	sugar	salt	vanilla	flour	baking powder	butter	vanilla	salt	butter	shortening	confec. Sugar	milk				Item	Price	% change (50% increase = .5)	New Price
Unit measured as	dozen	pounds	pounds	quart	pounds	pounds	pounds	quart	pounds	pounds	pounds	pounds	gallons				sugar	$0.50	0.25	$0.75
Amount of unit used per 36 cupcakes	0.7500	0.9923	0.0049	0.0150	1.2375	0.0195	1.0000	0.0225	0.0049	0.7500	0.6780	3.9600	0.0473				sugar	$0.50	0.5	$1.00
price/unit	$1.50	$0.75	$0.20	$40.00	$0.30	$3.00	$2.00	$40.00	$0.20	$2.00	0.55	$0.81	$3.00				Confect. Sugar	$0.56	0.25	$0.81
Ingredient cost per /36 cupcakes	$1.13	$0.74	$0.00	$0.60	$0.37	$0.06	$2.00	$0.90	$0.00	$1.50	$0.37	$3.21	$0.14	$11.02				$0.56	0.5	$1.06
Cost /cupcake														$0.31	$0.27	$0.04