Determine an unknown selling price, based on two known values out of 4

[spking58]

Formula math logic issue:

I know these things:

1. vendor cost
2. desired net margin dollars
3. commission percentage
​

what I don't know and need to determine by formula is:

1. a selling price
2. a value of the commission % (I know the desired percentage, but since I don't know the selling price yet, I don't know the value of commission.)
​

Knowing that I have to know the value of the commission % in order to add that cost to the vendor cost, if those two are known, I will know all my costs and then determine a price, based on knowing what I want left over for me after it's all done... but I don't know the price or the value of the commission, just a known desire that they want an nn% of commission.


Need to be pointed in the right direction. Not sure even where to start to search, nor what search strings to start to search for.








I have price
cost

 

[shg]

price = cost / (1 - margin - commission)

[Table="width:, class:grid"][tr][td="bgcolor:#C0C0C0"][/td][td="bgcolor:#C0C0C0"]

A​

[/td][td="bgcolor:#C0C0C0"]

B​

[/td][td="bgcolor:#C0C0C0"]

C​

[/td][/tr][tr][td="bgcolor:#C0C0C0"]

1​

[/td][td]cost[/td][td]

$ 100.00​

[/td][td]B1: Input[/td][/tr]
[tr][td="bgcolor:#C0C0C0"]

2​

[/td][td]margin[/td][td]

40%​

[/td][td]B2: Input[/td][/tr]
[tr][td="bgcolor:#C0C0C0"]

3​

[/td][td]commission[/td][td]

20%​

[/td][td]B3: Input[/td][/tr]
[tr][td="bgcolor:#C0C0C0"]

4​

[/td][td]price[/td][td="bgcolor:#E5E5E5"]

$ 250.00​

[/td][td]B4: =B1/(1-B2-B3)[/td][/tr]
[/table]

 

[spking58]

Thanks. one issue is regarding margin though.

I don't know margin Percentage... I only know the margin dollars...

so selling price is determined by the adding of the Value of the commission percentage. I know the percentage of commission, but since I don't know the price, I don't know the Amount of commission.... so, costs are determined by the known vendor costs of nn + the unknown costs of commission.

I don't know the desired margin percentage as that is a byproduct of all of the costs (which have two unknown variables... selling price and value of commission %)

 

[SyedUsman]

[TABLE="class: grid, width: 500, align: left"]
<tbody>[TR]
[TD][/TD]
[TD]A[/TD]
[TD]B[/TD]
[/TR]
[TR]
[TD]1[/TD]
[TD]COST[/TD]
[TD]$100[/TD]
[/TR]
[TR]
[TD]2[/TD]
[TD]MARGIN[/TD]
[TD]$20[/TD]
[/TR]
[TR]
[TD]3[/TD]
[TD]COMMISSION IN %[/TD]
[TD]30%[/TD]
[/TR]
[TR]
[TD]4[/TD]
[TD]PRICE [/TD]
[TD]=(B1+B2)/(1-B3)[/TD]
[/TR]
[TR]
[TD]5[/TD]
[TD]COMMISION IN VALUE[/TD]
[TD]=B4*B3[/TD]
[/TR]
</tbody>[/TABLE]

 

[shg]

I don't know margin Percentage... I only know the margin dollars...

Margin is a percentage. Profit is the corresponding dollar amount.