Hi, thanks for reading. I would appreciate help with the following:
Assume a markup percentage of 1.2%.
Customer price is $125, with the markup above already applied.
How can I calculate the base cost?
Hi, thanks for reading. I would appreciate help with the following:
Assume a markup percentage of 1.2%.
Customer price is $125, with the markup above already applied.
How can I calculate the base cost?
Mark-up amount = mark-up percentage/100 * selling price (customer price)
and
customer price = base-cost + mark-up amount
then
customer price * (1 - mark-up percentage/100) = base-cost
base-cost = 125 (1-1.2/100) = 125 * 0.988 = 123.50
You may have already guessed that I'm out of school
Thanks. See, the problem I get with this method is:
125 * .988 = 123.50
123.50 * 1.012 = 124.98 (short of 125 exactly, and over time, with many large invoices, there will be a noticeable variance)