I apologize as well for the hijack! I didn't intend to start an argument and this will be my last post on this particular subject.. Miz, this is EXACTLY what I was trying to say in my post. Like I said, apples and apples- there is no difference if you do it one way or the other. And yes, how you figure that amount in your mind is personal preference in that regard. I was trying to determine if you did both (i.e. included an hourly wage into the cost to produce the item PLUS adding a profit, which is what SS said he was doing and makes no sense). My initial point before we started getting into tax issues, was that if attempting to figure how much of a profit you will make on an item (in your own mind), calculating your own hourly wage into your costs doesn't work as it isn't an accurate figure. It would make more sense to say "Ok I've got $6.75 out of my pocket into this candle. I would like to make $6.25 for my time, so I need to sell it for $13". Not "This candle cost me $13 (because it didn't) so I need to sell it for $20. I hope that makes more sense...