Cost divided by .2 = retail. It makes your ingredients 20% of the retail cost.
Also I don't really understand it and I'm new at baking and I'm trying to find a way to charge people for my work, any help please.
I probably go about this the wrong way, so forgive me if this confuses anyone.
I take my cost of supplies and double it. Then I figure out labor for projects, and add them together. I figure that pays me labor, and puts money back into the business, by doubling product costs.
Also, I charge family members for supplies and no labor (unless there is a ridiculous project or wedding), so they pay me supplies X2, and I still get a 'profit' to put towards business.