The formula to calculate the Cost Plus Margin (CPM) is:
CPM=IPC×100
Where:
Let's say the item profit (IP) is $50 and the item cost (C) is $200. Using the formula:
CPM=50200×100
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×M)
Example: P=100+(100×0.2)
Definition: A cost margin price calculator helps determine the selling price by adding a margin to the cost.
Formula: P=C+(C×M)
Example: P=150+(150×0.25)
Definition: Adding margin to cost involves calculating the selling price by applying a margin to the cost.
Formula: P=C+(C×M)
Example: P=200+(200×0.3)
Definition: Net cost plus margin involves calculating the selling price by adding a margin to the net cost.
Formula: P=NC+(NC×M)
Example: P=250+(250×0.15)
Definition: Calculating cost margin involves determining the margin percentage based on the cost and selling price.
Formula: M=P−CC
Example: M=300−250250
Definition: The margin on cost formula calculates the margin percentage based on the cost and selling price.
Formula: M=P−CC
Example: M=400−300300
Definition: Adding margin to cost involves calculating the selling price by applying a margin to the cost.
Formula: P=C+(C×M)
Example: P=350+(350×0.2)