Another maths Q for you all.....

[Perfect_Pirouette]

Okay so it is nearing the end of my working day, I am on 5 hours sleep and this is NOT making sense to me.

I had to apply 30% GM earlier onto £152.19. I divided it by 0.7 which gave me £217.41

If I wanted to make that 40% GM what would I need to divide it by???

*dons tin hat*

I really don't get this companies way of calculating at all...

I've just been told factory cost (£152.19) / by 1-GM (40%) = Sell price

?????

 

[Jools1234]

oh why did i look at this? i am ill and tired and now sitting in the corner rocking whilst your little equation goes round and round in my head

 

[Perfect_Pirouette]

Opps, this was meant to be in SB.

I *think* if I divide it by 0.6 that should give me 40% GM on £152.19?

 

[luckyoldme]

Am i getting this totally wrong?
Do you need to find 40% of 152.19 then add it on?

 

[fine_and_dandy]

My first thought was 0.6, however this is based on my logic which normally makes sense to absolutely no one but me!!

I can't really offer any constructive advice because I am quite pants at maths, but I can eat a chocolate for you if that helps??










Or I'll just eat one anyway!

 

[Sussexbythesea]

Don't know what GM stands for but using your previous assumption of 0.7 = 30% is it 0.6?


Was intrigued so looked this up. http://en.wikipedia.org/wiki/Gross_margin

 

[Perfect_Pirouette]

Am i getting this totally wrong?
Do you need to find 40% of 152.19 then add it on?

For normal %s yes, however for GM (Gross Margin) no, which is what I am learning!!

 

[luckyoldme]

divide by 100 then multiply by 40 to get 40%
.............1.5219..................£60.88(rounded to the nearest penny)
£152.19 + £60.88 = £213.07 (rounded to the nearest penny)

 

[luckyoldme]

thats all way above my head then!!! and i run my own business!!!

 

[Perfect_Pirouette]

My first thought was 0.6, however this is based on my logic which normally makes sense to absolutely no one but me!!

I can't really offer any constructive advice because I am quite pants at maths, but I can eat a chocolate for you if that helps??










Or I'll just eat one anyway!

Don't know what GM stands for but using your previous assumption of 0.7 = 30% is it 0.6?


Was intrigued so looked this up. http://en.wikipedia.org/wiki/Gross_margin

That's what I was thinking 0.6 however I don't want to get this wrong for a second time nor do I want to go in and ask him and look like a total dunce. But seriously, all this is too much for my brain today!

So 0.6 would give me £253.65 now if you were to normally add 40% onto £152.19 you wouldn't get that!! However, this isn't normal %s! Gah, I am sure it's just me being blonde.

 

[Perfect_Pirouette]

divide by 100 then multiply by 40 to get 40%
.............1.5219..................£60.88(rounded to the nearest penny)
£152.19 + £60.88 = £213.07 (rounded to the nearest penny)

Yes, that's how I would work it out but that's not how they do it and then my boss looks at me with a withering look like I'm a complete pleb!!!! When NOONE'S TOLD ME HOW THEY WANT ME TO WORK IT OUT IN THE FIRST PLACE AND I AM NOT A MIND READER!! GGRRR

 

[Sussexbythesea]

1 - GM 40%

1= 100%
1 - 40% = 0.6

£152.19/0.6 = £253.65

Works out to be a 66.67% mark-up

 

[Perfect_Pirouette]

1 - GM 40%

1= 100%
1 - 40% = 0.6

£152.19/0.6 = £253.65

Works out to be a 66.67% mark-up

Well I bit the bullet in the end and just did the same calcs as you and sent it through. If it's still wrong I give up!