Formula to calculate profit

[Hammerjoe]

I would like a quick and easy formula to help calculate profit.
Scenario.

Suppose I purchased 100 Iphone8 at $1000 each plus 15% tax.

In excel:
A1=100
B1=$1000.00
C1=15%

I tried to sell them and nobody would pay me over $1000.00 for them.
So I looked around and found another provider that would sell me the iphones for $500.00/each plus the 15% tax.

A2=100
B2=$500.00
C2=15%


Now I have a guy that would like to buy them all from me at the best price.
I need a formula that would calculate the price to sell all the iphones so that I would recoup all the money spent buying them (that includes the taxes) and on top of that I also have to pay 15% tax to sell the stock to the guy.
Of course I would also like to make a profit so to calculate the price I would like to get a 10% profit on the whole lot.

Any help would be appreciated.
Thanks

 

[Hammerjoe]

Because 1+x is not the same as 1/(1-x)

If you want 10% margin on PRICE (which is where margin is measured), you need to divide cost by (1/10%), not multiply by (1+10%).

I just want to have the total cost of the sale + transaction fee altogether and add to it a 10% profit to it.

 

[shg]

Once again, Joe: Post#21. If it doesn't do what you want, explain why.

 

[Hammerjoe]

Once again, Joe: Post#21. If it doesn't do what you want, explain why.

It seems to me you are too focused on the margin.
Forget that.

Your formulas determine correctly the cost to acquire the units or $805.00 per unit.


To sell the whole lot (the 435 units all at once) I have to pay one transaction fee of 15%.

$805*15% = 120.75 right?

Add that transaction to the total 805+120.75 = 925.75
Finally I want to get 10% profit of it, 925.75*0.10 = 92.57

So final sell price per unit 925.75+92.57=1018.32

Thats the math I am looking for and the line E9: =E6 * (1+E7) * (1+E8) seems to do the trick

I am terribly sorry for wasting so much of your time shg but I really appreciate your help getting a basic formula to calculate this for me.

 

[shg]

$805*15% = 120.75 right?

No. You pay a fee on the total amount of the transaction. If you markup an $805 cost by 120.75, that's a $925.75 price. Then they charge 15% of that, and you get 0.85 * 925.75, and net 786.89.

Joe, I can explain this to you, but I can't understand it for you. Good luck.