Calculating Profit for Lemonade Stand
To make a profit, calculate the total expenses to start selling lemonade. Then determine a price per cup so that the number of cups sold covers expenses. For ongoing profit, aim to sell enough cups to cover daily costs plus extra profit. More customers buying more cups increases overall profits. However, higher prices can decrease customers. Balance pricing and expenses to maximize profit.
To calculate cost per cup: Total supplies cost divided by number of cups. For example, $10 supplies make 25 cups, which is $0.40 per cup. Sell above the breakeven point of costs per cup for profit.
With low costs per cup from powder mixes, profit comes from volume sold. Charge $0.25-$0.50 per small cup. For fresh lemons, charge $1-$1.25 for large cups. Serving 100 people at $1 profit per cup raises $100 profit to cover expenses.
Consider fixed costs like booth rentals to determine needed cup sales. If rent is $500 and costs are $1 per cup, selling 100 cups at $4 makes $100 profit. Lowering price increases volume, like selling 130 cups at $3.50. Balance pricing for profit goals.
Forecast lemon needs based on estimated sales. 5-10 cups a day take 10-15 lemons. 25-50 cups a day need 50-75 lemons. Over 100 cups daily require 200+ lemons. Adjust amounts as needed over days of operation. Making more lemonade boosts sales potential.
Determining Daily Lemonade Sales
How much does a lemonade stand make per day?
Setting Prices for Lemonade
How much should you sell a cup of lemonade for?