Mixing, Blending & Industrial Batch Processing worked example
Recipe Margin with selling price per kg of 2.42 $ / kg: a worked example
This worked example runs the recipe margin numbers for a tougher week than the baseline: selling price per kg of 2.42 $ / kg instead of the typical 4.85 $ / kg. Calculate recipe gross margin from selling price per kg, total recipe cost per kg, and a reference target price for benchmarking.
The inputs for this scenario
- Selling price per kg: 2.42 $ / kg (the input this scenario stresses; the baseline uses 4.85)
- Total recipe cost per kg: 3.4 $ / kg (held at the documented default)
- Reference target price: 4.5 $ / kg (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Recipe gross margin = selling price per kg - total recipe cost per kg.
- Margin works out to -21.78 % at these inputs, and this is the headline figure for the scenario.
- Absolute margin works out to -0.98 value at these inputs.
- Available amount works out to 2.42 value at these inputs.
- Required amount works out to 3.4 value at these inputs.
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 168% below the baseline at -21.78 %.
- Use it when costing a new formulation, repricing after an ingredient cost change, or comparing reformulation options on a margin basis. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.
Results at a glance
- Margin: -21.78 % (headline result)
- Absolute margin: -0.98 value
- Available amount: 2.42 value
- Required amount: 3.4 value
Run it with your numbers
- To rerun this with your own numbers, open the live Recipe Margin calculator, set selling price per kg to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.