Cooking Cost Structure
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1. Selling Price
* What is the price you plan to charge for one unit of your product or service?
* How did you decide on this selling price?
2. Cost of Goods Sold (COGS)
* What materials or items do you need to produce one unit?
* How much does it cost you to make one unit of your product?
3. Variable Costs
* What costs change depending on how many products you sell?
* Give two examples of variable costs in your business.
4. Fixed Costs
* What costs stay the same no matter how much you sell?
* Name two fixed costs you expect to pay every month.
5. Contribution Margin
* If your selling price is $___ and your variable cost is $___, what is your contribution margin per unit?
* Why is contribution margin important in your business?
6. Break-Even Point
* Based on your fixed costs and contribution margin, how many units do you need to sell to break even?
* What does it mean to reach your break-even point?
* What is the price you plan to charge for one unit of your product or service?
* How did you decide on this selling price?
2. Cost of Goods Sold (COGS)
* What materials or items do you need to produce one unit?
* How much does it cost you to make one unit of your product?
3. Variable Costs
* What costs change depending on how many products you sell?
* Give two examples of variable costs in your business.
4. Fixed Costs
* What costs stay the same no matter how much you sell?
* Name two fixed costs you expect to pay every month.
5. Contribution Margin
* If your selling price is $___ and your variable cost is $___, what is your contribution margin per unit?
* Why is contribution margin important in your business?
6. Break-Even Point
* Based on your fixed costs and contribution margin, how many units do you need to sell to break even?
* What does it mean to reach your break-even point?
