Noob at the Farmers Market-- Need Advice!

Hey everybody! I am about to take my first step from hobby baker to legit seller of baked goods by joining my local farmers market (in a suburb of Dayton, OH). I plan on selling mostly cupcakes, but potentially also muffins, cookies, and/or brownies. I have a full-time job, but my hours are about to be cut by one whole day a week, costing me 20% of each paycheck. Coincidently, the workday I'm losing is Friday, and my FM is Friday afternoons 3-7 (weird, I know).

So, to cut to the chase, I need advice!! How much should I make? How should I price things? Should I sell individual cupcakes? Packs of 4? Packs of 6? What's the best way to transport them from my house to the FM? What about hot weather? 

For some background: I am required to purchase liability insurance that costs about $250 for the year, and I may also need to buy things like a table and/or tent, since my FM just gives me a physical spot, I provide the rest. My production cost is approx $0.50 per cupcake, not accounting for those big one-time expenses.

I have no idea how many people regularly visit, but it's in one of the more up-scale high-income neighborhoods in the county in a pretty busy shopping center. The FMs in surrounding towns are much smaller and less organized than this one (which is why I'm going to sell at this one instead of the one a few blocks from my house). Last year they had around 20 vendors selling a variety of things from your usual veggies and produce to honey and jams to soaps and lotions. There are two existing baked item vendor: a very established local company that makes artisan bread and an organic bakery that sells bread, granola, whole wheat muffins, etc. They don't make dessert type items except the occasional cookie, so I wouldn't really be competing with them.

Thanks guys! That's actually just what I was thinking in terms of ~100 cupcakes, sold individually or in packs of 4. Thanks for validating my ideas!

Any suggestions for pricing? I was thinking maybe $1.50 for one or $5 for 4? Do you think people would pay more than that? Production costs are around $0.50 each including packaging costs, but I need to make enough profit to cover my liability insurance and one-time big purchases like folding tables, etc, and also come out ahead enough to make the whole venture worthwhile. Most bakeries in my area charge around $3 per cupcake for "gourmet cupcakes", FYI.

Tried to post a reply once and it didn't work, so sorry in advance if it shows up and double-posts.

Thanks for the advice! I was actually thinking of doing ~100 cupcakes sold individually or in groups of 4, so thanks for validating my ideas!

How much do you think I could charge for them? Pro bakeries in my area sell $2.75-$3.25 each for "gourmet cupcakes", but I figure I'd have to go much lower as I'm not an established brand and I don't have a storefront or anything. I was thinking $1.50 each or 4 for $5? Do you think I could go higher and still have people buy them? My production cost is around $0.50 per cupcake including packaging, but I need to make enough profit to cover the major one-time purchases like required liability insurance, tables/tent, etc, while also making a profit for myself.

What do you guys think?

Thanks so much! You guys are really helping me out. 

I think my cupcakes are at least as good as what you can get from local bakeries and probably worth just as much. I was just afraid customers would think less of me selling from a Farmer's Market stand like I'm not a "real" bakeshop, even though my cupcakes look and taste awesome and I'll have a professional-looking stand and a facebook page for my business and everything. I guess that's just poor baking-self-esteem, haha. I know people would be interested in my cupcakes because I donated some batches to a charity auction in my area recently and there were more bids ($1 = 1 bid) for each batch of my cupcakes than for things like $50 gift cards and such. One of the cupcake winners shared with the rest of the group and I was bombarded with requests to buy more! So yeah, my product is good enough for me to charge more, I guess.

I'm really excited about the idea of being able to make a profit off of something I love to do so I'm researching everything I can about how to be successful at it. I already have the awesome product, I just have to find an efficient, profitable way to sell it!

Oops, I wasn't trying to be a jerk and undercut them! I was just afraid people wouldn't be willing to pay as much for my cupcakes since I'm not a legit "real" bakery with a storefront and everything, I'm just some random chick at the farmer's market, lol.