# Your question: How do you calculate the cost of baking a cake?

Contents

## How do you calculate cost of baking?

Calculate your cost of goods sold

Your prices should cover your cost of goods sold, or COGS, at the very minimum. The formula to calculate your COGS is: Cost per serving + Labor cost per item + Variable Costs + Fixed costs + Startup costs.

## How much does an 8 inch cake cost?

ROUND CAKES

SIZE SERVINGS PRICE
6 inch 4-6 \$45.00
8 inch 8-12 \$55.00
10 inch 16-20 \$70.00
12 inch 30-40 \$80.00

## What are fixed costs for a bakery?

The bakery’s fixed costs consist of rent, bakery equipment, taxes, insurance, and utilities. The bakery’s variable costs related to making one loaf of bread is \$1.80. These costs include bakery ingredients, marketing and overhead.

## How much do ingredients cost for a bakery?

STARTUP COSTS

Expense Range Average
Opening Inventory (Ingredients & Supplies) \$5,870 – \$34,275 \$17,167
Exterior Signage \$1,797 – \$30,371 \$8,966
Prepaid Expenses (City, County, State, Landlord) \$1,481 – \$18,220 \$6,502

## How much cake do I need for 50 guests?

If you are planning on making or buying a layered cake, you should realize that a single 12-inch cake will yield approximately 25 servings, while it will usually take about three 10-inch cakes for 50 people to each have a slice.

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## How much does a 4 layer 8 inch cake serve?

Tiered cakes

Tiers that vary in size will produce different portions, which you will need to factor in when creating your cake design. For instance, a 4 tiered cake in a standard shape and size, for example, 10-inch, 8-inch, 6-inch, and 4-inch tiers, can generally feed around 75 people.

## How much money can you make selling cakes?

If you’re just taking special orders, the bakers estimated you can earn between \$200 and \$400 per month; if you’re working 20 hours per week, \$800 to \$1,200; and if you start baking lots of wedding cakes, much, much more. There’s one thing both of the home bakers I spoke with emphasized: the power of word-of-mouth.

## What are the expenses of a bakery?

What are the ongoing expenses for a bakery?

• Rent & utilities: \$2,800.
• Employees’ pay: \$5,143.
• Raw ingredients: \$3,000.
• Insurance: \$700.

## How much does it cost to run a small bakery?

The Cost to Run a Bakery

Entrepreneur magazine notes that the average startup cost for a bakery is between \$10,000 and \$50,000. The Start Your Own Business Bible says bakeries can jumpstart with a nest egg of \$2,000 and can draw in between \$2,000 and \$5,000 in monthly income.

## Are bakeries profitable?

The most profitable bakeries have a gross profit margin of 9%, while the average is much lower at 4%. The growth of profitable bakeries can be as high as 20% year over year. While a large number of bakeries never reach the break-even, a handful of them can even have a net profit margin as high as 12%.

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