Donna
DonnaD
Registered Posts: 6 Regular contributor ⭐ 😼 ⭐
Can anyone expain sales magin calculatons in simple terms, the question I am looking at is, if the cost price is £900 and the sales margin is 40% what is the selling price, I know the answer is £1500 but haven't got a clue how to work it out???
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I might not explain this very well, but if the cost price is £900, this represents 60% of the selling price (as the margin is 40%)
Therefore:
Selling price = 1,500 (100%)
Cost price = 900 (60%)
Margin = 600 (40%)
900 / 60% = £15000 
Thanks
Thanks Richard I understand the percentage part I think but is the actual equation 900/60% and not 900 x 60% as this would equal £1500, therefore in another example if the cost price is £1000 and the margin is 60% would the selling price be £2500?0 
Sorry, you're right it is divide not multiply.
I've worked out your example answer to be £2500 too.0 
Thanks very much!!0
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