Cake Price Calculator

Formula

To calculate the Cake Price ($CP$):

\[ CP = \frac{C}{1 - \frac{DM}{100}} \]

Where:

$CP$ is the Cake Price ($)
$C$ is the total cost of materials and labor to make the cake ($)
$DM$ is the desired margin (%)

What is Cake Price?

The cake price refers to the total amount charged for a cake, which includes the cost of materials and labor, plus a desired profit margin. This ensures that the baker covers all costs and earns a profit.

Example Calculation 1

Let's assume the following values:

Total Cost of Materials and Labor ($C$) = $50
Desired Margin ($DM$) = 20%

Using the formula:

\[ CP = \frac{50}{1 - \frac{20}{100}} = \frac{50}{0.8} = 62.50 \]

The Cake Price is $62.50.

Example Calculation 2

Let's assume the following values:

Total Cost of Materials and Labor ($C$) = $100
Desired Margin ($DM$) = 25%

Using the formula:

\[ CP = \frac{100}{1 - \frac{25}{100}} = \frac{100}{0.75} = 133.33 \]

The Cake Price is $133.33.