I failed maths too...

[mooreeasyvibe]

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

[Rassis]

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.

[mooreeasyvibe]

Thanks for your help with this - very much obliged.