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April 2nd, 2013, 08:24 PM   #1
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How can I add a percentage cost to a selling price under the

Hi, I've been working on this homework question forever and I know there's something obvious that I'm missing (maybe not) but this seems impossible.

What were trying to do is cover all costs associated for the sale within the selling price.

We have-
Flat Fees: $4.70
Shipping: $5.20
Material costs: $100
^^^^
And we want to include a 35% Profit of Material Costs ($35) within the selling price.

And last but not least, the part I can't figure out is how to add a 11.9% fee (applied after the sale) of everything combined to the selling cost.

If I add 11.9% of the selling cost, the 11.9% will have changed because I'm adding the $ amount to the total...right? So how can I account for it? By raising the 35% profits to something more?

I need to have it be exact! So if the fees were deducted I would be left with $135. ($100 + the 35% profit)

I just need to be sent in the right direction so that I could do this alone next time. Not necessarily looking for the answer, I'm looking for the procedure/the way to go about this type of calculation which I'm sure happens all the time in business. Thanks for all your help!
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April 3rd, 2013, 04:53 AM   #2
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Re: How can I add a percentage cost to a selling price under

I don't understand your problem. Don't you just add up the costs and multiply by 1.119?
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April 3rd, 2013, 08:41 AM   #3
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Re: How can I add a percentage cost to a selling price under

Quote:
Originally Posted by Mrmikepan
We have-
Flat Fees: $4.70
Shipping: $5.20
Material costs: $100
^^^^
And we want to include a 35% Profit of Material Costs ($35) within the selling price.

And last but not least, the part I can't figure out is how to add a 11.9% fee (applied after the sale) of everything combined to the selling cost.

If I add 11.9% of the selling cost, the 11.9% will have changed because I'm adding the $ amount to the total...right? So how can I account for it? By raising the 35% profits to something more?

I need to have it be exact! So if the fees were deducted I would be left with $135. ($100 + the 35% profit)
Your problem is unclear to me also; does it all work a bit like:

a = flat fees, b = shipping, c = material, x = percentage of material (.35), y = extra percentage (.119)
a = 4.70
b = 5.20
c = 100.00
d = c * x = 100 * .35 = 35
e = (a + b + c + d) * y = (4.70 + 5.50 + 100 + 35) * .119 = 17.24
invoice = a+b+c+d+e = 162.14

Setting it up with variables (as I show) means easy to make changes in fee structure...
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April 3rd, 2013, 02:20 PM   #4
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Re: How can I add a percentage cost to a selling price under

x = 4.70 + 5.20 + 100*1.35 + 0.119x right?
-0.119x - 0.119x

0.881x = 4.70 + 5.20 + 100*1.35
0.881 0.881

x = (4.70 + 5.20 + (100*1.35))/0.881
x = (9.90 + 135)/0.881
x = 144.90/0.881
x = 164.47 (164.47*0.119) = 19.57

164.47 - 4.70 = 159.77
159.77 - 5.29 = 154.57
154.57 - 19.57 = 135!!

Thanks Anyways, but I figured it out!
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April 3rd, 2013, 07:29 PM   #5
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Re: How can I add a percentage cost to a selling price under

Quote:
Originally Posted by Mrmikepan
x = 4.70 + 5.20 + 100*1.35 + 0.119x right?
Wrong.
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