I failed maths too...

Hi,

I have the following to work out the different margins made on products.

profits = price - vat - unitcost - postage + 3.85

(vat is 17.5% of price)

margin = profits / price * 100

2 examples:

Product X

Price: 10.00
VAT: 1.75
UnitCost: 4.15
Postage: 1.95 (this is variable dependant on the weight 0.03 * weight - in this case 650 grams, if less than 1250 grams, else if it is over 1250 grams the flat rate of 4.50 is used for postage)
Weight: 650
Profit: 6.00
Margin: 60%

Product Y:

Price: 39.00
VAT: 6.83
UnitCost: 21.75
Postage: 4.50 (this is variable dependant on the weight 0.03 * weight if less than 1250 grams, else if it is over 1250 grams the flat rate of 4.50 is used for postage as in this case)
Weight: 10000
Profit: 9.77
Margin: 25.05%


At the moment I am getting all of the margins successfully and they all vary.

My aim is to readjust the prices so that margin is always 35%. How do i do this from this information??

I hope any maths wizzes can help out there.

many thanks for any help in advance

chris

Hi,

If Cu is the unit cost, Cp is the postage cost, Mg is the unit margin and Pr is the unit price, then Pr is given by the following formula:

Pr = (3.85-Cu-Cp) / (Mg+VAT-1)

I attach a small apllication in Excel. Just enter your data in cells D4 to D7 and you get the unit selling price in cell D9.

Hope this helps.

Thanks for your help with this - very much obliged.