# calculating sales price

1. ## 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.

2. 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

hope that helps

4. 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?

5. 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

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

6. with cost in A1

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

7. i must be missing the point
you asked "what should we sell it for ?"
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!)

8. I second DLL's formula.
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. 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. 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

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