My kids were thinking of having a lemonade stand, and in the past I’ve
said that if they’re doing it as a fundraiser we’ll cover the cost of
ingredients, but if they’re doing it for their own money then they
need to reimburse us. But how much should that be?
The recipe they’re using is approximately:
2C lemon juice
2C sugar
Water
Ice
Plus cups to serve it in. Makes about one gallon, or sixteen 8oz
servings.
The water is basically free and
the ice is below the rate that our icemaker replenishes: also
effectively free. At our local grocery store 32oz of lemon juice is
$3.50, sugar is $0.85/lb, and cups are ~$0.10/each. So each 8oz
serving of juice is:
1oz lemon juice: $0.11.
1oz sugar: $0.05.
cup: $0.10
total: $0.26
If they sell until they run out of lemonade, call it a quarter a cup.
They usually sell each cup for a dollar, so that’s a gross margin of
75%. Not bad!
Lemonade Stand Costs?
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My kids were thinking of having a lemonade stand, and in the past I’ve said that if they’re doing it as a fundraiser we’ll cover the cost of ingredients, but if they’re doing it for their own money then they need to reimburse us. But how much should that be?
The recipe they’re using is approximately:
2C lemon juice
2C sugar
Water
Ice
Plus cups to serve it in. Makes about one gallon, or sixteen 8oz servings.
The water is basically free and the ice is below the rate that our icemaker replenishes: also effectively free. At our local grocery store 32oz of lemon juice is $3.50, sugar is $0.85/lb, and cups are ~$0.10/each. So each 8oz serving of juice is:
1oz lemon juice: $0.11.
1oz sugar: $0.05.
cup: $0.10
total: $0.26
If they sell until they run out of lemonade, call it a quarter a cup. They usually sell each cup for a dollar, so that’s a gross margin of 75%. Not bad!