Cost Calculations

%3CLINGO-SUB%20id%3D%22lingo-sub-2325800%22%20slang%3D%22en-US%22%3ECost%20Calculations%3C%2FLINGO-SUB%3E%3CLINGO-BODY%20id%3D%22lingo-body-2325800%22%20slang%3D%22en-US%22%3E%3CP%3EI%20need%20help%20on%20calculation%20a%20cost%20price%3C%2FP%3E%3CP%3ESell%20price%20is%20%C2%A375.00%3C%2FP%3E%3CP%3EProfit%20%3D%2070%25%3C%2FP%3E%3CP%3EVAT%20%3D%26nbsp%3B%2020%25%3C%2FP%3E%3CP%3ECost%20Price%20%3D%20%3F%3F%3C%2FP%3E%3C%2FLINGO-BODY%3E%3CLINGO-SUB%20id%3D%22lingo-sub-2344073%22%20slang%3D%22en-US%22%3ERe%3A%20Cost%20Calculations%3C%2FLINGO-SUB%3E%3CLINGO-BODY%20id%3D%22lingo-body-2344073%22%20slang%3D%22en-US%22%3EHi%2C%20in%20its%20simplest%20form%20just%20multiply%2075%20by%200.5833333%3CBR%20%2F%3E%3CBR%20%2F%3EA.%20VAT%20is%20calculated%20on%20selling%20price%20%2F120%20x%20100%20(0.83333)%3CBR%20%2F%3E%3CBR%20%2F%3EB.%20Profit%2070%25%20of%20selling%20price%20x%200.7%3CBR%20%2F%3E%3CBR%20%2F%3EC.%20Selling%20price%20%3D%200.7%20x%200.8333%20(0.58333)%3CBR%20%2F%3E%3CBR%20%2F%3ESimple%20spreadsheet%20would%20have%20cell%20a1%20Sell%20Price%2C%20a2%20VAT%20(0.8333)%2C%20a3%20Profit%20(0.7)%2C%20a4%20Cost%20Price%20%3Da1*a2*a3%3C%2FLINGO-BODY%3E
Occasional Visitor

I need help on calculation a cost price

Sell price is £75.00

Profit = 70%

VAT =  20%

Cost Price = ??

1 Reply
Hi, in its simplest form just multiply 75 by 0.5833333

A. VAT is calculated on selling price /120 x 100 (0.83333)

B. Profit 70% of selling price x 0.7

C. Selling price = 0.7 x 0.8333 (0.58333)

Simple spreadsheet would have cell a1 Sell Price, a2 VAT (0.8333), a3 Profit (0.7), a4 Cost Price =a1*a2*a3