Does anyone know the formula to workout what price to achieve a desired profit margin, if only the total cost and profit margin are given?
E.g. Fixed Costs: £10,000 Variable Costs: £200 Desired Profit Margin: 30%
I've seen elswhere online this formula: Cost/(1- Desired Profit Margin). But I'm unsure if "Cost" in this formula refers to Variable Costs, Fixed Costs or Total Costs? I'm aslo unsure whether I need to know the sales volume or not.