More About Formula To Find The Selling Price

Asked By Morrison Thoms 0 points N/A Posted on - 08/10/2020

Hey, I am having trouble setting up the selling price for my product. Could you please let me know how the sale price of a product is to be analyzed so that I needn’t have to incur losses?

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Answered By Jhon Nahoana 0 points N/A #335856

More About Formula To Find The Selling Price

Hi, in setting up the Selling price, you must consider your fixed and variable overheads. The selling prices must cover, i.e., expenses, and they must generate a profit margin. The profit margin depends on the seller. Higher the profit margin, the higher will be the sale value.

The sales price is the summation of the Cost of the product inclusive of other overheads and its Gross profit margin.

If we formulate the above equation, we get,
Selling Price = Cost (inclusive of overheads) + Profit margin / gross margin
The gross margin/profit margin is the percentage of profit on the sale.

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• Posted on - 08/10/2020
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