Decreasing ratio

E

EliZeff

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Aug 8, 2019
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I need help figuring out what the formula would be for this problem.
I sell items on the internet and I am trying to create a formula to determine the markup of the product. The problem is that the markup would be different based on the cost of the item.
For instance, an item that costs me $10 would be marked up by 200%. But a product that costs me $100 would be marked up by only 150%.
What would be the formula that would give me a markup percentage based on the cost of the item?
So based on this I need a formula that would give me the markup percentage of items that cost $10, $25, $50, $75 and $100 using only one formula and based on the high and low percentage limits given in the question.
 
To derive a formula we need a rule for $25, $50, $75. Is there interpolation involved? Wondering why this is posted in probability/Statistics.
 
I am not even sure what interpolation means. Just the simplest solution is great even if not totally precise. Where do you recommend it be posted? I am new to this website.
 
Wow thank you for holding my hand through this.
Ok, so according to this calculation, a 25 dollar item would have a markup of 146.05263%.
Is there a single equation that I could apply to all the prices in the range that would give me the correct markup?
 
The equation is on the linked page. Just substitute your values for x0, y0, ...
 
By the way, how did you get 146? It's incorrect, since it's outside the 150 - 200 range. If the price is between 10 and 100, the markup has to be between 150 and 200. Did you draw the graph with the 2 points and the line?
 
Oops I plotted them wrong. The correct answer is 196.05263. And thank you for your time.
 
EliZeff said:
Oops I plotted them wrong. The correct answer is 196.05263. And thank you for your time.
Click to expand...
You are welcome. Still, how did you get the answer? Did you plug in your 2 points and the x (25) into the formula I linked to?
 
Yes I used that link that you sent and used actual real life values. Now I have a the suggested markup on all 1193 items in my Access database. This saves a lot of time and agonizing over what would be a reasonable markup for each product. I used the lowest cost of $0 and the highest cost of $60 - which is the cost of our most expensive product - with a markup range of 250% to 150%. This formula will need to be changed once we have more products that cost more than $60. Or I might just keep this formula intact and limit the minimum markup to 150% to future proof it instead of recalculating the range of products.
Thank you again.
 
I asked because I didn't get 196. I got 191.666.
200+(150-200)*(25-10)/(100-10) = 191.666...
 
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