based on information below, what would be the profit per cookie if they were sold $6 per cookie? what price should i sell it to make a profit and what should i change? 1. Direct Materials (Ingredients):
Ingredient Costs: $2,000
ï‚§ This represents the cost of all the ingredients required to make the oatmeal cookies, such as oats, flour, sugar, etc.
2. Direct Labor (Payroll Costs):
Weekly Payroll: $2,520 (might be incorrect)
ï‚§ This is the cost of labor for one week. Assuming five employees are paid $15 per hour for six hours a day, seven days a week, the weekly payroll is $2,520.
Monthly Payroll: $10,080 (might be incorrect, should reflect $15 per hour)
ï‚§ Calculated by multiplying the weekly payroll by four (the average number of weeks in a month), this represents the monthly labor cost for the Mixing and Baking Process.
3. Manufacturing and Equipment Costs:
Kitchen Equipment: $5,000
ï‚§ The initial cost of purchasing kitchen equipment necessary for the mixing and baking process, such as mixers and ovens.
Rent and Utilities: $3,000
ï‚§ Monthly expenses for renting the production space and utilities required for the manufacturing process.
Packing Equipment: $500
ï‚§ The cost of packing equipment, which includes materials and machinery for packaging the finished cookies.
Total Manufacturing Costs: $8,500
ï‚§ The sum of kitchen equipment, rent and utilities, and packing equipment costs.
Total Direct Costs = Direct Materials + Direct Labor
= $2,000 + $10,080
Total Direct Costs = $12,080
Total Manufacturing Costs = Total Direct Costs + Manufacturing and Equipment Costs
= $12,080 + $8,500
Total Manufacturing Costs = $20,580