# Profit Margins and Mark Ups

camnix
Posts:

**3**Registered
If I am given a inventory sales price and a sales percentage margin only, how can I find the cost price of the inventory?

e.g: inventory at selling prices is £240000

Sales Margin is £144000

what is the cost price of the inventory for the shops financial statements?

I know this is probably basic mathematic formulas but can anyone tell me what that formula is?

Thanks

e.g: inventory at selling prices is £240000

Sales Margin is £144000

what is the cost price of the inventory for the shops financial statements?

I know this is probably basic mathematic formulas but can anyone tell me what that formula is?

Thanks

## Comments

3Registered149Registered, TutorSelling price = Cost price + profit

If the sales margin is 60%, this means that the profit is 60% of the selling price.

The other

40% of the selling price is the cost.The selling price of the inventory is £240,000

40% of this is £144,000 so that is the cost

3RegisteredMany thanks

149Registered, TutorFor more information, see:

media.wix.com/ugd/9a8e75_ff42b2bfe9e54dd393f4545e338d069e.pdf