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Labor cost for making 200 candles:
(200 candles)(1 hour / 30 candles)(£12 per hour) = £80
Cost per candle:
(£143.15 + £80) / 200 = £1.12 per candle (rounded to the nearest p)
I would initially set the profit percentage at the maximum 100%, or £1.12 per candle. This would make the selling price of each candle equal to £2.24. At this profit percentage, the labor rate per hour would come out to £33.60, which appears to be about twice the median income for full-time workers in the UK. This may mean that the profit percentage is too generous. In real life though, a comparison would need to be made with the selling prices of other similar candles. If other similar candles are being sold for £1.75, then the selling price of £2.24 might be unreasonable.
Another reason for selecting the maximum profit percentage is that the seller can always lower the price if sales are lagging, which would effectively lower the profit.
(Materials cost per candle) * (1 + profit percentage) = (£1.12)(1 + 100%) = (£1.12)(2) = £2.24
Check of profit percentage calculation:
Profit margin = Selling cost - Material cost = £2.24 - £1.12 = £1.12
Profit percentage = (Profit margin)/(Material cost) * 100% = (£1.12)/(£1.12) * 100% = (1)&100% = 100%