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How do I use the Cost/Sell/Margin function on my Canon P100-DH 2 desktop printing calculator? Please for the love of god help me.

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You have to enter two of the three factors: Cost, Selling Price, Margin. The unit will then provide the missing factor.

To calculate Cost:
Enter the Selling Price, press 'Sell' button
Enter Profit Margin, press 'Margin' button
Unit will display/print Cost

To calculate Selling Price:
Enter Cost, press 'Cost' button
Enter Profit Margin, press 'Margin' button
Unit will display/print Selling Price

To calculate Profit Margin:
Enter Cost, press 'Cost' button
Enter Selling Price, press 'Sell' button
Unit will display/print the Profit Margin

Posted on Apr 22, 2008

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Cost/Sell / Margin can be very confusing it uses the following Account formulas (For Cost = Selling price - ( Selling price / Markup) For Sell = Selling Price =Cost / (1-Margin%))

It is not a pure percentage. Please respond back if you have any other questions.

Posted on Apr 22, 2008

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I must not understand what a margin is so could someone explain, the instructions give this example: If I purchase something for $2000 and want to make a 20% profit I would need to sell it for $2500 (2000...


Hi,
I think you should refer to you definitions. The 20% is called the markup. The profit margin is calculated with respect to the revenue. So you should divide the 400$ by 2400$ to get a net profit margin of 400/2400 =0.1667 or 16.67% (And we are not taking into account the taxes).

Margin = Markup /(price + Markup)
Markup = Margin* (Price +Markup)
Markup = Margin*Markup + Margin* Price
Markup*(1-Margin) =Margin*Price
Markup = Margin*Price/( 1-Margin)
For Price =2000, Margin =0.2 (that is 20%)
Markup = 0.2*2000(1-0.8) =0.2*2000/0.8
Markup = 2000*(0.2/0.8)= 2000*0.25 = 500

Thus to have a (net) profit margin of 20%, an item costing 2000$ must be marked up by 500$.

Try not to reason with numbers. Write the defining relation and use algebra to isolate for the variable you seek.

Hope it helps.
Thank you for using Fixya and for rating this solution.


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