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What Should Be The Suggested Selling Price [( Cost 100$) + (% Of Cost) = Sales] ?

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Question added by Abdul Wahab , Credit Controller , Takween Advanced Industries
Date Posted: 2014/06/23
Qaisar Mukhtar
by Qaisar Mukhtar , Fronend Developer , Hopen

To verify that a selling price of $142.85 will give us the correct gross margin, we subtract the cost of $100 from the $142.85 selling price. The result is a gross profit of $42.85 which when divided by the selling price gives us the required gross margin of30% ($42.85/$142.85 ).

Mubashir Shahzad
by Mubashir Shahzad , Oracle Functional Consultant/ERP Business Analyst , Jaffer Business System

as cost of sales are diffcult to estimate becasue there are other fixed or variable cost, support cost etc. it is better apply margin based element on cost of products.

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