Re: Can some one help please

The example you gave is inconsistent with what you said the boss wanted. If the cake cost you 0.30 to make, then a retail price of "cost plus 70%" would be 0.30 x 1.70 = 0.51. What you did in the example was "cost plus 70 pence," which is an entirely different thing. So before we can help you with this you need to tell us precisley what it is that your boss asked you to do. By the way, often when talking about price mark-ups we talk about "margin," which is calculated as price minus cost divided by price. It turns out that multiplying cost by 3.33 would give a 70% margin. So since the boss said that was wrong it seems he is not asking for 70% profit margins.

Re: Can some one help please

Sorry as you can probably tell I am not very good at this.

He said that the cost we produce the cake at should be 30% of the total sale price. He was the one that showed me the example of adding £0.70 to the £0.30 to reach a sale price of £1.00.

So I know how much it cost to produce each cake but I don't know how to get to the sale price. Hope this is a bit clearer.

Re: Can some one help please

OK, so it seems he does want 70% margins after all. If Cost = 0.3 x Price, then set Price = Cost/0.3, or stated another way: Price = Cost x (1/0.3) = Cost x 3.333. So multiply cost by 3.333 to get the price. For example:

If cost = 0.30, then price = 3.333 x 0.30 = 1.00. To double check: cost/price = 0.30/1 = 30%

If cost = 0.60, then price = 3.333 x 0.60 = 2.00. Double check: cost/price = 0.6/2 = 30%

I have no idea why your boss said this is wrong, other than the fact that you wrote 3.334 instead of 3.333.

Re: Can some one help please

Thanks loads. I could not work out why that was wrong either and I believed him when he said I was wrong. guess I should have more confidence in my limited math ability.

Have a great evening.

Emma