Total monthly overhead is divided in proportion to how many units of each product you make per month. If cakes are 70% of your monthly output, they carry 70% of the rent and bills.

For food, 5–15% is realistic (peeling, spoilage, trimmings). For crafts and tailoring, 2–5% usually covers offcuts. When in doubt, use 10% — underestimating waste is how profits quietly disappear.

Margin is profit ÷ selling price; markup is profit ÷ cost. If your unit cost is Rs. 100 and you want a 30% margin, sell at Rs. 143 — not Rs. 130 (that's a 30% markup, only a 23% margin).

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