How to Compute for Product Price

Computation of Product Price

Definition of Terms

Mark Up-the desired profit

Total Expenses- sum of the prices of ingredients used to make the products.

Unit Price- price of each gram or ml of the ingredients

Yield- the baked product

Steps:
                                                                           
1. Refer to the recipe, list all the ingredients and their quantity.

2. Refer to the official receipt of the products you purchased. List their prices and quantity.

3. Compute for the price per unit
Ex. 1Kg BF - 34.00
      1000g    315g
1g of BF= 34.00÷1000= 0.034
              = 0.034

4. Compute for the price of the ingredients used in the recipe.
315gx 0.034=10.71

5. Compute for the total expenses.
    Add up all the price of the ingredients.

6. Decide on the percentage of desired profit based on the time spent in making the product or skills needed to make the product.
So is it going.to be 20%? 30%? 40%? or 50%?

7. Compute for the mark up.
Mark Up= Total expenses x percentage of desired profit
        Ex. 98.79x .20
             = 19.60
20% Mark Up= 19.60

8. Count the number of yield.
     12 pieces

9. Compute for the price of 1 yield.
Price/ yield= Total expenses + Mark Up
                      ___________________________
                               Number of yield
                    = 98.79+19.60/ 12
                    = 118.39/ 12
                     = 9.80

10. You may round it off.   P10.00

                      




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