1. ## calculating selling price

i am trying to calculate the selling price, and think i am missing something really simple... i have the answer for the first one but that is as far as i have got. but i just need the equation (or the way to do it)

so...

if the cost price is £2.50 and the GP is 60% what is the selling price = 7.34

i just dont kniow how i got that answer

2. Can i see your work

3. cost price = £2.50
to achive a Gross Profit of 60% Selling price is equal to 7.34

this is the answer i got from my GP ready reckoner but i need to show my working and hoping someone can give me a formula.

thanks

cost price = £2.50
to achive a Gross Profit of 60% Selling price is equal to 7.34

this is the answer i got from my GP ready reckoner but i need to show my working and hoping someone can give me a formula.

thanks
Gross Profit = Total Sales - Cost of goods sold

Think of 100% as your starting point, because if you sell the goods for 100% of what they cost you then you make nothing and lose nothing.

Ex.
If Sell price = 100% of cost = 1.00 * 2.50 = 2.50
GP = (2.50 sell price) - (2.50 cost) = 0 profit

Anything above 100% is positive gross profit. To get 60% profit you can just add 60 to 100 in this case to make the sell price 160% of the cost.

Sell price = 160% of cost = 1.60 * 2.50 = 4.00
GP = (4.00 sell price) - (2.50 cost) = 1.50 profit

Don't know where you got 7.34 but that is incorrect.