Cost of production

So,let's see how much it will take us to start off our business.

Cost of all the materials required to start out business

1. Gold's all Purpose flour-$3.5/80oz
2. Domino Premium Pure Cane Light Brown Sugar-$1.69/16 oz
3. Milk-$4/lb
4. Eggs-$6/dozen
5. Navitas Natural Raw Cacao Powder $12/16oz
6. Simply Organic Pure Vanila Extract Certified Organic,$15.20/8oz
7. Butter-$5/lb
8. Clabber Girl Baking Powder-$2/10oz
9. Crisco All-Vegetable Butter Flavor Shortening-$4.82/48oz
10. White Jumbo Muffin/Cupcake Cups, Pack of 50-$3
11. Baker's Secret 11624001 Basics Nonstick 24-Cup Mini Muffin Pan-$12
12. Utensils-Mixing bowls($12). Electric Mixture($250), Measuring Cups and spoon($10)
13. Decorative(Fruits, Frosting, Chocolate chips, M&M's etc.)-$30

Total: $369.21

Cost for a batch of cupcakes

1. Flour-$0.24
2. Sugar-$0.58
3. Butter-$1.8
4. Eggs-$1.5
5. Vanilla essence-$0.15
6. Baking powder-$0.03
7. Shortening-$0.2
8. Decorative-$5

Total cost for 12 cupcakes-$9.5
Cost for one cupcake-$0.79


So, to make profit we need to sell cupcake at price more than 79 cents. From the survey, we saw that many people were willing to pay $1-2 for a cupcake.

So,

Selling price for a cupcake-$2.00

Profit per cupcake-$1.21


Profit per batch of cupcake-$14.50