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How To: Using Desired Gross Profit Percentage to calculate Selling Price

P: n/a
Hi Folks,

I *can* calculate the Gross Profit Percentage where both the Cost and
SellPrice are known, using the formula:
(SellPrice - Cost) / SellPrice = GPP
eg ($24.92 - $14.95) / $24.92 = 40%

But I wanted to do the reverse of that....to calculate the SellPrice, where
only Cost and the desired GPP are supplied.
I was struggling with my high-school math, and having a heck of a time with
this :)
I did try a Google Search on this newsgroup, and came up empty.
Then I found this link which does a good job of explaining the theory and
math: http://www.mygrossmargin.com/tips.html?nid=1386

Using this info as a guide, I created this function ... which I am posting
here in case anyone is interested.

Public Function fGetSalePrice(vCost As Double, vDGPP As Double) As Variant
'*******************************************
'Name: fGetSalePrice (Function)
'Purpose:
'Author: Don Leverton
'Date: December 15, 2004, 04:16:26 PM
'Called by:
'Calls:
'Inputs:
'Output:
'*******************************************
On Error GoTo ErrHandler

'(Quote from http://www.mygrossmargin.com/tips.html?nid=1386)
' By dividing cost by the inverse of the gross margin
' you wish to achieve, you will arrive at the sell price
' necessary to achieve the desired gross margin.

Dim vPrice As Double
vPrice = (vCost / (100 - vDGPP)) * 100

fGetSalePrice = Format(vPrice, "Currency")

ExitHere:
Exit Function

ErrHandler:
Dim strErrString As String
strErrString = "Error Information..." & vbCrLf
strErrString = strErrString & "Error#: " & Err.Number
strErrString = strErrString & "Description: " & Err.Description
MsgBox strErrString, vbCritical + vbOKOnly, "Function: fGetSalePrice"
Resume ExitHere
End Function
--
Don Leverton,
Store Manager

NAPA / Bellzer Boyz
Store # 1529
6320 Imperial Way
Olds, Alberta T4H-1M5
====================
Nov 13 '05 #1
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P: n/a
Don,

I am in business to provide customers with a resource for help with
Microsoft Access, Excel and Word
applications. You can view my website at www.pcdatasheet.com. If you ever
need outside help, please contact me at my email address below.

--
PC Datasheet
Your Resource For Help With Access, Excel And Word Applications
re******@pcdatasheet.com
www.pcdatasheet.com
"Don Leverton" <ia*@telus.net> wrote in message
news:0Jpwd.82593$6f6.60276@edtnps89...
Hi Folks,

I *can* calculate the Gross Profit Percentage where both the Cost and
SellPrice are known, using the formula:
(SellPrice - Cost) / SellPrice = GPP
eg ($24.92 - $14.95) / $24.92 = 40%

But I wanted to do the reverse of that....to calculate the SellPrice, where only Cost and the desired GPP are supplied.
I was struggling with my high-school math, and having a heck of a time with this :)
I did try a Google Search on this newsgroup, and came up empty.
Then I found this link which does a good job of explaining the theory and
math: http://www.mygrossmargin.com/tips.html?nid=1386

Using this info as a guide, I created this function ... which I am posting
here in case anyone is interested.

Public Function fGetSalePrice(vCost As Double, vDGPP As Double) As Variant
'*******************************************
'Name: fGetSalePrice (Function)
'Purpose:
'Author: Don Leverton
'Date: December 15, 2004, 04:16:26 PM
'Called by:
'Calls:
'Inputs:
'Output:
'*******************************************
On Error GoTo ErrHandler

'(Quote from http://www.mygrossmargin.com/tips.html?nid=1386)
' By dividing cost by the inverse of the gross margin
' you wish to achieve, you will arrive at the sell price
' necessary to achieve the desired gross margin.

Dim vPrice As Double
vPrice = (vCost / (100 - vDGPP)) * 100

fGetSalePrice = Format(vPrice, "Currency")

ExitHere:
Exit Function

ErrHandler:
Dim strErrString As String
strErrString = "Error Information..." & vbCrLf
strErrString = strErrString & "Error#: " & Err.Number
strErrString = strErrString & "Description: " & Err.Description
MsgBox strErrString, vbCritical + vbOKOnly, "Function: fGetSalePrice"
Resume ExitHere
End Function
--
Don Leverton,
Store Manager

NAPA / Bellzer Boyz
Store # 1529
6320 Imperial Way
Olds, Alberta T4H-1M5
====================

Nov 13 '05 #2

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