Excel - Calculate Margins

Asked By SeeStatio on 18-Sep-08 08:24 PM
I need to calculate gross margins and prices at different levels of GM:

Non-Excel Formula to calculate Selling price using gross margin
Selling Price = Cost / (1-GM%)

For example, if your product costs $100 and the required gross margin is
40%, then your Selling Price = $100/(1-0.4) = $100/0.6 = $166.6


So in my worksheet  E16=cost  E17=Current Selling Price
I want to put my current GM in F17,
I want to get a selling price for GM at:
15% in G16
20% in H16
25% in I16
30% in J16
35% in K16

Any ideas?




FSt replied on 18-Sep-08 09:22 PM
hi,
you already have the formula
if cost = e16 and gm = f17 then formula in e17 would be
=e16/(1-f17)

the other formula would be much the same except using the % instead of a
cell reference.
in g17, =e16/(1-.15)
in h17, =e16/(1-.2)
in i17, =e16.(1-.25)
ect, ect

regards
FSt1
SeeStatio replied on 18-Sep-08 09:37 PM
Thanks for your quick reply.  I had figured that one out before I was able to
get back here and mark it as solved.
Sometimes you just have to go back to the old pencil and paper and map it
all out. (or at least NotePad)
FSt replied on 18-Sep-08 09:52 PM
hi
i thought that was a tab simple. but glad to try and help anyway.
thanks for the feedback.
regards
FSt1