 |
| ||
| |||
|
| Math Central | Quandaries & Queries |
|
Question from ata: My cost is 100 and I want to make 20% profit on my selling price (not 20% of the cost). So, what should be calculation formula? Let's say my cost is 493.71 and I want to make 53.28% profit on the selling price; so how to determine the selling price? |
Hi Ata,
Some algebra helps solve this. Suppose your cost is $\$C$ and the selling price is $\$S,$ your profit is then you want your $\$S - \$C.$ You want your profit to be 20% of your selling price so what you need is
\[\$S - \$C = 0.20 \times \$S.\]
Add $C to each side to obtain
\[\$S = 0.20 \times \$S + \$C\]
and then subtract 0.20 × $S from each side to get
\[\$S - 0.20 \times \$S = \$C.\]
Thus
\[0.80 \times \$S = \$C\]
or, dividing both sides by 0.80
\[\$S = \frac{\$C}{0.80}.\]
Hence for the example you sent, if the cost is $\$C = \$100$ then
\[\$S = \frac{\$100}{0.80} = \$125.\]
I hope this helps,
Penny
| ||
| ||
| ||
 |
 |
|
Math Central is supported by the University of Regina and The Pacific Institute for the Mathematical Sciences.