Discounts and Unit Sales

Number4

Board Regular
Joined
May 20, 2013
Messages
71
Can't seem to find this on the net.

If I offer a discount of 10%, how many more units do I have to sell in order to break even on GP$.

I can't seem to find this formula. There are plenty of charts, but that does not help me.
 

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Use AND(test, test, test, test) or OR(test, test, test, ...) as the logical_test argument of IF.
Found the answer, finally.

=(Current Margin/(Current Margin+Discount))-1

If current Margin (Rate, GP%) is 12.26% and you are discounting by -8%, then:

=(12.26%/(12.26%-8%))-1 = 188% more units.

If current Margin (Rate, GP%) is 44.64% and you are discounting by -8%, then:
=(44.64%/(44.64%-8%))-1 = 17% more units.
 
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