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calculating sales price

  1. #1
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    calculating sales price

    Hi, using Excel 2002 on XP.

    My partner and I are selling products. He gets 5% of the sales price, then I get the rest. But I want to make at least $2 on every sale. So, let's say the item cost us $50. If he wants 5% off the top, and I want at least $2, how do we calculate what to sell it for?

    I tried the following, but it didn't work:
    $50 (cost)
    + $2 (my profit)
    + 5% (partner's profit)
    ------
    $54.60 (sales price)


    It doesn't work because I end up with $1.87.
    $54.60 (sales price)
    - 5% (partner's profit)
    - 50 (cost)
    ------
    $1.87 (my profit)

    I've tried other things, but I always end up under $2. Is it possible to calculate this? or do I need to have a percentage for myself? If Excel can't do it, do you know of any calculators out there than can? Thanks.
    Last edited by kevin32; 07-18-2008 at 01:33 PM.

  2. #2
    Forum Guru martindwilson's Avatar
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    surely its ($50 +5%)+$2
    with 50 in a1

    =((A1/100*5)+2)+A1
    or
    =((A1*0.05)+2)+A1

    54.5

    you cant work it backwards because if you take 5% of 54.5 its also taking 5% of your share ! well you can but take off the $2 first
    Last edited by martindwilson; 07-18-2008 at 01:48 PM.

  3. #3
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    your formula should like

    =[Cost]+[Your Profit]+([Cost]x[PartnerProfit 5%])

    hope that helps

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    Thanks guys.

    but my partner gets his 5% from the sale first, then I get the rest (I can't take my share first). So, if the sales price is $54.50, he will subtract his 5% first ($54.50 - 5%(or $2.72) = $51.78), which appears to leave me only $1.78.

    Did I do that right? If not, how do I work backwards to make sure I'm getting at least the amount I expect?
    Last edited by kevin32; 07-18-2008 at 03:05 PM.

  5. #5
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    This appears to be an algebra exercise:

    Let X=Sales Price

    50+2+.05X= X

    52 + .05X = X

    52= .95X

    X= 54.74

    Proof:

    partner share: .05*54.74 = 2.74
    your share: 2


    54.74-2.74-50 (cost) = 2 (your share)

  6. #6
    Forum Moderator daddylonglegs's Avatar
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    with cost in A1

    =(A1+2)/(1-5%)

  7. #7
    Forum Guru martindwilson's Avatar
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    i must be missing the point
    you asked "what should we sell it for ?"
    the answer is as most of us pointed out add 5% then add your 2$
    cant be more straight forward than that.
    take your 2$ then he gets whats left minus original cost.
    dll's formula works it out but its still 54.74
    hmm my first stab was well wrong should have read
    =(A1*0.05+A1)+2 somehow i swapped the second a1 with 2 :oops:
    if your partner's insisting on taking 5% first i'd suggest you get a new partner
    (if you use 5% from total sale price and its priced over 760 you'll be in negative values an owe him money!)
    Last edited by martindwilson; 07-18-2008 at 06:32 PM.

  8. #8
    Forum Guru shg's Avatar
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    I second DLL's formula.
    Quote Originally Posted by mdl
    (if you use 5% from total sale price and its priced over 760 you'll be in negative values an owe him money!)
    If the cost was $1000, it would sell for $1054.74, PD would get $52.74, and you'd still get your $2.00.

    But taking Martin's point, my advice is pick products that cost no more than $36 each ...

  9. #9
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    DaddyLongLegs, this is what I was looking for. Thanks.

    Thanks for the breakdown wetterinc.

    martindwilson, yep my partner's got to get his cut first. so I needed a formula that give us both what we want. Thanks for your insight.

  10. #10
    Forum Guru martindwilson's Avatar
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    ah i see the problem i was still working on the premis of
    a1=1000
    =(A1*0.05+A1)+2
    which =1052
    not =(A1+2)/(1-5%) which =1054.74
    working backwards from 1052

    1052-5% = 999.4
    then take away original price
    its a - figure which kicks in at >760
    probably should have wetterincs post first
    Last edited by martindwilson; 07-18-2008 at 09:35 PM.

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