Can i see your work
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
Help please
scott.leask@googlemail.com
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.