Tried this method... But the given answer is $11.43.When you sell the item you want to get back what you paid for it plus 30% of what you paid for it.
What you paid for it; $8
30% of what you paid for it; so you want 30% of $8 = .3*$8 = $2.40
So what do you charge for this item?
Hi, may I know how to find the selling price for the following question?
If the cost price of goods is $8, how much do you need to sell to make a 30% profit margin?
Formula:
Profit margin = profit/revenue (%)
I've never seen a general consensus of definitions. Maybe it's out there, but we'll have to wait for a generation or two to retire, I think..To me (admittedly with no training in business or economics) profit margin is always calculated on selling price. When based on cost price the term is "mark up". But whatever definitions could be considered, the OP has indicated that they are expected to use selling price (equivalent to revenue).
Yup, thanks! Managed to solve it!Use the formula you were given here and ignore posts suggesting otherwise.
Profit margin = profit/revenue (%)
profit = p
profit margin = 30/100
revenue ( = cost price + profit) = 8 + p
Solve for p then selling price = cost price + profit.
I've never seen a general consensus of definitions. Maybe it's out there, but we'll have to wait for a generation or two to retire, I think..