HI,
Please help!!
I am looking for a formula that gives me the desired sell price based off a target profit margin after I have calculated my costs.
Example:
Cost (known) $10
Warehouse cost (known) $1
Freight (known) $1
Office cost (known) $2
profit margin 5% (this is a known value calculated as- $ remaining after costs/sell price)
sell price (unknown)
sell price = (sum of all costs)*(1 - profit margin %)
Shouldn't it be this....
Sell Price = Total Cost*(1+Profit%)
Regards
sktneer
Treat people the way you want to be treated. Talk to people the way you want to be talked to.
Respect is earned NOT given.
That looks correct.
Thanks!
You're welcome. Glad to help.
Thanks for the rep.
If that takes care of your original question, please mark your thread as Solved by selecting Thread Tools (just above your first post) --> Mark thread as solved.
No, sorry, this is not correct. You have calculated sell price using markup. This is different than margin. My formula uses margin, which is the word Juddk used in his original post.Originally Posted by sktneer
http://www.accountingtools.com/quest...nd-markup.html
@Jeff
By Profit% I meant Profit Margin %.
Actually not sure which formula worked for OP.
To give an example of my point:
If your costs are $10,000 and you sell for $10,500, you have a 5% markup.
If your costs are $10,000 and you sell for $10,526 you have a 5% profit margin.
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