flexiBake Tutorial 1

flexiBake Tutorial 1Tutorial 1: Calculating business overheads and defining default businesssettings.Business OverheadsWhen pricing a product (recipe) it is not adequate just to price competitively and assume that yourbusiness has the same costs as your competitors. It is important to take into account the cost ofingredients, labour, packaging as well as a portion of the cost of the business overheads (i.e. theexpenses involved in running the business). Overhead cost is an important factor in calculating thecost of a recipe and is frequently ignored by bakeries.flexiBake provides a convenient and easy means of calculating the Overhead Cost Per Person PerHour for your company. This is the average cost to the business of each person involved in theproduction of the product. flexiBake uses the Overhead Cost Per Person Per Hour to calculate theoverhead cost associated with each recipe you enter.For example, if a particular recipe calls for 30 minutes labour and the overhead rate has beencalculated at $12.00 per hour then the overhead cost applied to the recipe will be $6.00 (i.e. $12.00 /hr x ½ hr).With flexiBake determining the Overhead Cost Per Person Per Hour is simply a matter of entering allthe expenses incurred by your business annually to support production i.e. all your fixed costs, rent,utilities, interest, cost of office staff and management, repairs, delivery vehicle and staff expenses,advertising etc. These expenses should not include the ...