FINANCIAL MODELLING
Automated cost-to-profit analytics for margin optimization
A dynamic Excel system that recalculates production costs across an entire product range the moment a single ingredient price changes, turning scattered cost data into live, decision-ready profit margins.
Excel
Financial Modelling
Sensitivity Analysis
Cost Accounting
+50
PRODUCTS MODELLED
LIVE
DYNAMIC MARGIN TRACKING
3
TRAFFIC-LIGHT SIGNALS
THE BRIEF
Which products are actually profitable?
Built for AdiTak, an Iranian pastry-based company, to analyse and protect net profit and margins across the full product range.
Problem
AdiTak needed a clear understanding of which products are profitable and whether profit margins are sustainable, without a reliable way to tie ingredient costs to selling prices product by product.
Objective
Build a dynamic costing model that calculates true production cost per product, compares it against the selling price, and flags margin health, so pricing decisions are fast, accurate, and loss-proof.
DATA COLLECTION
What feeds the data model
Inputs
Ingredient unit costs, ingredient quantities for each product, and general production costs (e.g. employee salary and overheads).
Outputs
Per-kilogram production cost, selling price, and net profit for every product, rolled up into clear profitability and margin views.
THE DELIVERABLE
Dynamic cost & profit model
Production Cost Engine
Per-ingredient cost × quantity per product
General production costs allocated in
Margin Health
Profit / loss amount visualised per product
Profitable vs unprofitable products separated
Sensitivity Analysis
Change one ingredient price → all costs recalc
Instant view of the knock-on margin impact
How it works
Map the recipes
Capture each product's ingredient quantities and link them to unit cost inputs.
Build the cost engine
Formulas roll ingredient and production costs into a final per-kg production price.
Add the traffic lights
Conditional rules flag red / amber / green so margin risk is visible at a glance.
DECISION SUPPORT
A traffic-light system for pricing
Colour-coded signals turn raw numbers into instant pricing decisions.
Green - Healthy
Selling price stays sustainably higher than production cost. Margin is safe.
Amber - Watch
Production cost closely matches the selling price. Margin is thin and needs review.
Red - At loss
Production cost exceeds the selling price. The product is no longer profitable.
MORE
Deep Into the Project
The Cost-to-Profit Analytics project was developed for AdiTak, an Iranian pastry-based company, to analyse and identify net profit and profit margins for each product. The system allows production costs to be recalculated automatically by updating the price of a single ingredient, with costs adjusting instantly across all products based on ingredient usage and quantity.
The model includes a traffic-light system to support decision-making: products turn red/amber when production costs exceed or closely match sales prices, and green when sales prices remain sustainably higher than production costs. This enables rapid cost analysis, supports pricing decisions, and helps prevent potential losses.