Ok guys, it is really painfull to ask, because the question is easy, but I need help anyway:
I need the cost price of a Liter Beer:
1 Liter has the price to costumer 10€
Margin is 200 % in one distribution area and 150% in another distribution area
How do I calculate the cost for a liter Beer out of this?
(I know the answer should be 1.33 - but how do I get there?)
I would work backwards. But first, let's start with simple stuff. If the cost is €1 and the margin is 200%, this means that the sale price is €3 -> cost price x (1 + margin). So working backwards it is (whole)sale price / (1 + margin).
In your case:
€10 / (1 + 200%) = €10 / 3 = €3.33 and from there...
€3.33 / (1 + 150%) = €3.33 / 2.5 = €1.33
(edited)
Thanks a lot! I think, i just saw, what I missed out: Take it as a two step approach... THANKS a lot! — Katharina on Mar 15, 2018
Hi,
Not sure I understand correctly. First of all, what is "cost price"?
Secondly, Margin cannot be 200%. Simply because the margin is a % of price.
Best,
(edited)
Hey Vlad, the data is 1:1 from a case coaching I just had, so this is correct - margin in this case means profit margin. Maybe I missused the wording. — Katharina on Mar 15, 2018
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