Cost per item adds ingredients divided by the batch size, packaging, your time divided by the batch size, and fixed costs spread over your monthly sales. The suggested price covers that cost plus your fees and target margin: cost ÷ (1 − fees − margin). Sales cap figures multiply your price by your expected monthly sales.
These are planning estimates only, not tax, accounting, or legal advice. They don't include sales tax, income tax, or every cost of running a business, and your state's cap rules may count sales differently.
Getting close to your cap?
Read Outgrowing cottage food for what changes when you move to a commercial kitchen. Mendocino Food Consulting helps food entrepreneurs with formulation, shelf life, and scaling a recipe for production. We are food scientists, not attorneys, and we don't provide legal advice.