INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Estimate the cost to buy all ingredients at the store then divide by the number of cupcakes
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Guess and set a price without considering cost
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Go through the process of making cupcakes and measure the ingredients. Then calculate the cost per ingredient
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Go online and find competitor’s expenses
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Detailed explanation-1: -Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the unit as a whole. This will determine the cost of each ingredient used in a particular dish.
Detailed explanation-2: -This is the total amount spent on the ingredients – but not what is used in the recipe. To calculate the cost of ingredient used, for each ingredient: divide the ‘Cost of quantity purchased’ by the ‘Quantity purchased’; then multiple by ‘Quantity needed in recipe’.
Detailed explanation-3: -Calculating Edible Portion (EP) Begin by weighing the product before cleaning. Trim, fabricate, and portion the product. Weigh the edible portion and divide it by the AP weight. This will give you a percentage.
Detailed explanation-4: -Product Cost Formula = Direct Labor + Direct Material + Factory Overheads. Factory OH = Indirect Labor + Indirect Material + Other Factory OH. Product Cost per Unit Formula = (Total Product Cost ) / Number of Units Produced. Total Raw Material = Raw Material Required for Production + Ending Raw Material Inventory.