To calculate the profit per packet of chips, you'll need to gather some information. Here’s a step-by-step guide:
1. Determine the Costs
a. Cost of Production:
- Raw Materials: Ingredients (potatoes, oil, seasoning, etc.)
- Labor Costs: Wages paid for production.
- Overhead Costs: Utilities, rent, equipment depreciation, etc.
b. Total Cost per Packet: \[ \text{Total Cost} = \text{Cost of Raw Materials} + \text{Labor Costs} + \text{Overhead Costs} \]
2. Determine the Selling Price
- Selling Price per Packet: This is the price at which you are selling each packet of chips.
3. Calculate the Profit
a. Profit per Packet Formula: \[ \text{Profit per Packet} = \text{Selling Price} - \text{Total Cost per Packet} \]
4. Example Calculation
- Assumed Values:
- Cost of Raw Materials: $0.50
- Labor Costs: $0.20
- Overhead Costs: $0.10
- Selling Price: $1.00
b. Calculate Total Cost: \[ \text{Total Cost} = 0.50 + 0.20 + 0.10 = 0.80 \]
c. Calculate Profit: \[ \text{Profit per Packet} = 1.00 - 0.80 = 0.20 \]
Conclusion
In this example, the profit per packet of chips would be $0.20. Adjust the costs and selling price based on your actual figures to find your profit per packet.