Sales Price Calculator

Formula

To calculate the Sales Price ($SP$):

\[ SP = \frac{COGS}{1 - \frac{DM}{100}} \]

Where:

$SP$ is the Sales Price ($)
$COGS$ is the Cost of Goods Sold ($)
$DM$ is the Desired Margin (%)

What is Cost Division?

Cost division is a method of distributing the total cost of a shared expense among multiple individuals. This is commonly used in scenarios such as splitting a restaurant bill, sharing accommodation costs, or dividing expenses for a group event. It ensures that each person pays an equal share of the total cost.

Example Calculation 1

Let's assume the following values:

Cost of Goods Sold ($COGS$) = $200
Desired Margin ($DM$) = 20%

Using the formula:

\[ SP = \frac{200}{1 - \frac{20}{100}} = 250 \text{ dollars} \]

The Sales Price is $250.

Example Calculation 2

Let's assume the following values:

Cost of Goods Sold ($COGS$) = $150
Desired Margin ($DM$) = 25%

Using the formula:

\[ SP = \frac{150}{1 - \frac{25}{100}} = 200 \text{ dollars} \]

The Sales Price is $200.