Mixing, Blending & Industrial Batch Processing worked example

Recipe Margin with selling price per kg of 12 $ / kg: a worked example

What does the result look like when selling price per kg reaches 12 $ / kg? The full calculation is worked below with real intermediate numbers. Use it when pricing a new formulation or reviewing an existing recipe and you need a clean gross margin percent to defend the sell price to commercial.

The inputs for this scenario

  • Selling price per kg: 12 $ / kg (raised for this scenario; the documented default is 4.85)
  • Total recipe cost per kg: 3.4 $ / kg (unchanged)
  • Reference target price: 4.5 $ / kg (unchanged)

Working through the calculation

  • Applying the documented formula (Recipe gross margin = selling price per kg - total recipe cost per kg) to the inputs above produces each figure below.
  • At this operating point the engine returns 191 % for margin, the number this scenario is built around.
  • At this operating point the engine returns 8.6 value for absolute margin.
  • At this operating point the engine returns 12 value for available amount.
  • At this operating point the engine returns 3.4 value for required amount.

How this compares with the baseline

  • Against the tool's baseline example, where selling price per kg sits at 4.85 $ / kg and the headline result is 32.22 %, this scenario comes in 493% above the baseline at 191 %.
  • A figure at this level is achievable when selling price per kg is genuinely sustained, not just peaked for a shift. It is a gross-margin view using recipe cost only; it excludes packaging, freight, overhead absorption, and yield loss, so it overstates the true bottom-line margin.

Results at a glance

  • Margin: 191 % (headline result)
  • Absolute margin: 8.6 value
  • Available amount: 12 value
  • Required amount: 3.4 value

Run it with your numbers

  • Every input above is editable in the live Recipe Margin calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.