Introduction 

The demand for cupcakes is very high all over the country, especially in urban centres, Schools, Hospitals and Hotels.

The estimated initial investment for setting up a medium cupcake enterprise is NGN 9,241,ooo. This idea is projected to yield an annual revenue of  NGN 32,850,000  with a net profit margin of 32%

Process 

Cupcakes can be baked directly in a patty, often baked in paper cases.

Basic Cupcake Mix;

  • 100g unsalted butter, softened
  • 500g caster sugar
  • 500g self-raising flour
  • 8 medium eggs
  • 8 tablespoons milk
  • Pinch of salt (optional)

Tools & Equipments 

The Essential tools and equipment required include: Measuring Cups and spoons

Electric Mixer or Hand Mixer

Sheet Pans or Cupcake Pans

Oven Thermometer.

 

Capital Investment Requirements (CBN exchange rate -$1 to 410.20 NGN) as of 14 Dec 2021.

Capital Qty Price per one

NGN

Amount in NGN Amount

In USD

Mixer 1 20,000 20,000 48.78
Cupcake Pans 10 1,200 12,000 29.25
Gas Cooker 1 70,000 70000 170.64
Spatula 1 2,000 2000 4.87
Thermometer 1 3,000 3000 7.31
Measuring Spoon 1 2,000 2000 4.87
Measuring Cup 1 4,000 4,000 9.75
Total Amount 113,000 275.47

Production and operating costs 

Item Units @ NGN Qty/day Prod. Cost/

month-NGN

Prod. Cost/ Year

NGN

Prod. Cost/ Year

USD

Flour g 3500 500g  105,000  1,277,500 3,144.33
Margarine g 900 500g 27,000 328,500 800.82
BakingPowder g 50 2 3,000 36,500 88.98
Eggs piece  560  8 16,800      201,600              491.46
Sugar g 200 3 600       18,000               43.88
Subtotal 1,862,100 4539.49

 

 

General Costs (Overheads) 

Cost Per Month

NGN

Cost Per Year

NGN

Cost Per Year

USD

Rent 2,340 70,000 170.64
packaging 666.66 20,000 48.75
Labour 333.33 10,000 24.38
Utilities (Power &Water) 1000 12,000 29.25
Repair & Maintenance 2000 24,000 58.50
Gas 2400 28,800 70.21
Fuel 3000 36,000 87.76
Total 200,800 489.51

 

Project product cost and Price structure 

Item Qty/day Qty/yr @NGN per six Pdn Cost/

yr NGN

T/rev

NGN

 

T/rev

USD

Cupcakes 48 17,520 3000 1,862,100 8,760,000 21,355.44

 

Profitability Analysis Table 

 

Profitability Item Per day Per Month Per Year

NGN

Per Year

USD

Revenue 24,000 720,000 8,760,000 21,355.44
Less: Production & Operating Costs 5,260 157,800 1,862,100 4539.49
Profit 6,897,900 16,815.94