The formula to calculate the Cost Plus Margin (CPM) is:
\[ CPM = \frac{IP}{C} \times 100 \]
Where:
Let's say the item profit (IP) is $50 and the item cost (C) is $200. Using the formula:
\[ CPM = \frac{50}{200} \times 100 \]
We get:
\[ CPM = 25\% \]
So, the cost plus margin is 25%.
Definition: Cost plus margin pricing involves adding a markup to the cost of a product to determine its selling price.
Formula: \( P = C + (C \times M) \)
Example: \( P = 100 + (100 \times 0.2) \)
Definition: A cost margin price calculator helps determine the selling price by adding a margin to the cost.
Formula: \( P = C + (C \times M) \)
Example: \( P = 150 + (150 \times 0.25) \)
Definition: Adding margin to cost involves calculating the selling price by applying a margin to the cost.
Formula: \( P = C + (C \times M) \)
Example: \( P = 200 + (200 \times 0.3) \)
Definition: Net cost plus margin involves calculating the selling price by adding a margin to the net cost.
Formula: \( P = NC + (NC \times M) \)
Example: \( P = 250 + (250 \times 0.15) \)
Definition: Calculating cost margin involves determining the margin percentage based on the cost and selling price.
Formula: \( M = \frac{P - C}{C} \)
Example: \( M = \frac{300 - 250}{250} \)
Definition: The margin on cost formula calculates the margin percentage based on the cost and selling price.
Formula: \( M = \frac{P - C}{C} \)
Example: \( M = \frac{400 - 300}{300} \)
Definition: Adding margin to cost involves calculating the selling price by applying a margin to the cost.
Formula: \( P = C + (C \times M) \)
Example: \( P = 350 + (350 \times 0.2) \)