My Math Forum Sales price calculation

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 March 25th, 2014, 11:15 AM #1 Newbie   Joined: Mar 2014 Posts: 1 Thanks: 0 Sales price calculation Hey, For you guys this is probably peanuts: I have this formula in an IT application I am designing. It is used to calculate sales prices for materials: (( TMC + ( O * S ) ) * M ) * T ) = S TMC = Total manufacturing costs = e.g. 720 is given O = overhead percentage of sales price is given = e.g 25% S = Sales price we are calculating here M = Market uplift on total costs = E.g is given factor 3,00 but can be changed, with this we multiply our total costs to add margin T= Transport upcharge is given: E.g. 1,06 Now to calculate S we can deduct this: S = T * M * TMC / (1 - ( T * M * O)) Great the solutions I find with this formula are correct BUTTTT When T * M * O > 1 the solution will be negative, we will not sell something for - so much euro. What am I doing wrong? Thank you so much in advance, Michaël
March 25th, 2014, 05:46 PM   #2
Math Team

Joined: Oct 2011

Posts: 14,594
Thanks: 1038

Re: Sales price calculation

Quote:
 Originally Posted by spitzke (( TMC + ( O * S ) ) * M ) * T ) = S
Where does the missing half bracket "(" go?

Can you provide an ACTUAL example?
Could you use a decimal POINT instead of that funny "," you guys use :P
Like 2.25, not 2,25.
By the way, do you show 1,25 / 100 as ,125? YUK!

 March 25th, 2014, 07:25 PM #3 Global Moderator     Joined: Oct 2008 From: London, Ontario, Canada - The Forest City Posts: 7,945 Thanks: 1136 Math Focus: Elementary mathematics and beyond Re: Sales price calculation ,0125 :P
 March 25th, 2014, 08:02 PM #4 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,594 Thanks: 1038 Re: Sales price calculation Thanks Greg...10 minutes in the corner for me...
 March 25th, 2014, 08:17 PM #5 Global Moderator     Joined: Oct 2008 From: London, Ontario, Canada - The Forest City Posts: 7,945 Thanks: 1136 Math Focus: Elementary mathematics and beyond Re: Sales price calculation That's o.k. I've been keeping it warm for you.
March 26th, 2014, 11:20 AM   #6
Math Team

Joined: Oct 2011

Posts: 14,594
Thanks: 1038

Re: Sales price calculation

Quote:
 Originally Posted by spitzke Great the solutions I find with this formula are correct BUTTTT When T * M * O > 1 the solution will be negative, we will not sell something for - so much euro. What am I doing wrong?
Looks to me that you're doing everything wrong
Including the solutions you think are correct...

OK; using your illustration (changing TMC to C and O to V):
C = Total manufacturing costs: example 720
V = overhead percentage of sales price: example 25%
M = Market uplift on total costs: example 3%
T = Transport upcharge: example 1.06%
S = Sales price.

Equation should be (assuming M and T are percentages):
S = C + C*(M + T) + S*V
Solving:
S - S*V = C*(1 + M + T)
S(1 - V) = C*(1 + M + T)
S = C*(1 + M + T) / (1 - V)

So program should look like:
C = 720 : V = .25 : M = .03 : T = .0106 ' givens
S = C*(1 + M + T) / (1 - V)
PRINT.....whatever....

This will be the result:
Code:
Manufacturing : 720.00
Uplift        :  21.60
Transport     :   7.63
======================
Sale price    : 998.98
...and you'll never get negative results...unless V is over 100%!

 Tags calculation, price, sales

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