Quandaries
and Queries
Question:
Hello,
Could you please tell me the formula to calculate for example a 25% profit on cost.
I.e a sandwich cost .75p for the cost of ingredients, I wish to make a 40% profit on that cost so what do I multiply and divide it by to arrive at the selling price in order to achieve a 40% profit?
your help would be gratefully appreciated asap.
Many thanks.
Carol
Hi Carol,
If it costs you $0.74p to make the sandwich and you want your profit to be 40% of this cost, then your profit needs to be 40% of 0.74 which is
0.74p
40/100 = 0.296p
Thus you need to sell the sandwich for 0.74p + 0.296p = 1.036p or rounding, 1.04p.
Penny