Calculating Profit on Return

[Stclements]

If I want to workout the profit on return (POR) of a particular item I would divide the margin (difference in selling price to cost price) by the selling price. EX:- Product A costs $1.50 and sells for $4.50 the margin is $3.00 if you then divide that margin by the retail price you get the POR like so 3.00/4.50 =66.67%

My question is, if I know the cost price and I know my required POR how do I calculate the selling price

EX:- Product A costs $1.50 I need to make a POR of 75% using those two known variables how do establish the required selling price to achieve my POR.

Many Thanks

 

[Momentman]

Well this is more of maths than excel. its like making SP the subject of the formula from (SP-CP)/SP = POR or (SP-CP)*100/SP = POR

From where you would get SP =CP/(1-POR)

so if you have CP in A1 and POR in A2, then to find Sp in A3, use =A1/(1-A2) or =A1/(1-A2/100)

 

[Stclements]

Well this is more of maths than excel. its like making SP the subject of the formula from (SP-CP)/SP = POR or (SP-CP)*100/SP = POR

From where you would get SP =CP/(1-POR)

so if you have CP in A1 and POR in A2, then to find Sp in A3, use =A1/(1-A2) or =A1/(1-A2/100)

Many thanks for that.