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Margin = (Selling Price - Cost) / Selling Price

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Q: If I know the selling price and the margin I want to achieve what formula is used to calculate the price I need to buy the goods at?
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Related questions

How do you calculate Direct Margin as a percentage?

(selling price - direct cost)/selling price = direct margin


What is the Excel formula for the selling price if you have cost and margin?

The selling price is the cost plus the margin. If you know the margin as a fixed value and the cost was in cell A2 and the margin in B2, in C2 you could put the following formulas: =A2+B2 If the margin is a percentage of the cost and the margin is in B2, then the formula would be: =A2+A2*B2


How do you calculate the average contribution margin?

Formula for calculating average Contribution margin Average contribution margin = total contribution margin / total number of units


How do you calculate the selling price if you know the cost price and margin percentage?

Convert the margin percentage increase (decrease) to the absolute increase (decrease). Add (subtract) to (from) the selling price.


How do you calculate contribution margin rate?

Formula for contribution margin ratio = Sales – Variable cost / Sales


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


Calculate the contribution margin per unit?

Contribution margin per unit is calculated by subtracting the variable cost of the item from the selling price of the item.


How do you calculate break-even?

Formula to calculate breakeven point is as follows: Break even point = Fixed cost / contribution margin Contribution margin = Sales - Variable cost


What is the Formula of mark up rate?

Margin = (1-[cost/selling price]) x 100


What is the formula to calculate the gross margin?

The gross margin formula is gross profit divided by revenue. The gross profit and revenue amounts can be found by looking at a companies income statement.


How do you calculate the breakeven point?

Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost


What formula would you use to calculate the net profit margin?

You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin