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Math Help - Maximize price of Item

  1. #1
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    Maximize price of Item

    Hey so here is my issue. I need a formula to determine the minimum price of an item with the following variables:

    Price
    Rake
    Minimum Margin.

    So as an example, my Item costs me $20. It has a rake of 15% and I need to make a minimum margin of 10%. What is the minimum price where 15% of the final price can be removed and the selling price is still 10% greater then my cost?

    Not sure how clear that was, but its the best way I can describe it lol.

    Any help would be very much appreciated.
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  2. #2
    Super Member TheChaz's Avatar
    Joined
    Nov 2010
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    Northwest Arkansas
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    You want 85% of the (selling) price to be 110% of your cost. In symbols...
    .85P = 1.10C
    If you want the selling price in terms of your cost, divide by .85
    P = (1.10C)/.85, which is about 1.294C

    So multiply your cost by 1.294 (or anything larger) and you'll be good.
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