Quandaries
and Queries
My question is how to determine a percentage value for profit in the following example.
If I know that I will be paid, say, $150.00, for labor, and I want to make 20% profit on what I pay for the labor, what is the calculation and factoring process?
I see it like this
(x*.2)+x = 150
but I don't know how to factor it out from there.
Please advise,
Shawn
Hi Shawn,
Your equation is correct. If you pay x for labor and then add 20% of
that amount (0.2 
x) you
get $150
x + 0.2
You can say this another way that only involves one
operation. If you know x, the amount you will pay for labor then what
you need to charge to receive a 20% profit is 1.2 x,
that is
1.2
Thus
x = 150/1.2 = 125
Now check.
If you pay $125 for the labor and add 20% of $125 (0.2 $125
= $25) you get $150.
Penny