Fictional worked example
Worked example: bakery cake pricing
A fictional 10-slice cake including usable ingredients, decorating labor, board, box, and card fee.
Ingredients$13.60
Direct labor$18.00
Board and box$3.40
Total before percentage fees$35.00
Target contribution margin30%
Illustrative net price at 2.5% fee$51.85
These values are invented solely to demonstrate the formula. They are not market benchmarks, operating advice, or observed data.