Re: Mathematical calculation

"Martin" <ng@xxxxxxxxxxxxxxxxxxxxxxxxxx> wrote in message
news:pA_0j.9368$Ew3.4123@xxxxxxxxxxxxxxxxxxxxxxx

"Emrys Davies" <me@xxxxxxxxxxx> wrote in message
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Would someone kindly explain a simple formula for working out 0.7p
profit on 210p per pint of beer.

I worked it out to be 14.7p, but my reasoning does not make sense
to
me. I simply divided the 210 by 10 and multiplied the answer by 0.7

Thanks,
Emrys Davies.



I assume your "0.7p" is a typo, and you really mean a formula to work
out
the amount of "profit" (in pence) made by the seller, given that you
know
the selling price (in pence) and the "profit" (as a percentage).

If this assumption is right, then the main thing to understand is that
percentage "profit" can be expressed in one of two ways - either
"gross
profit" (GP) percentage, or "mark-up" percentage.

Easiest to explain with an example...

Assume Pub pays 200p when it buys the pint, and then sells it to you
for
250p, then its GP is 50p. As a percentage, this GP is always
expressed as a
% of the selling price - i.e. 50 / 250 x 100% = 20%.

But the "mark-up" of 50p is expressed as a percentage of what the pub
paid -
i.e. 50 / 200 x 100% = 25%.

HTH - but please clarify your question if you are still not clear....

--
Martin

The pub earns 0.7p profit per pint and the pint costs me 210p. I was
working out their gain per pint and the simple formular which is used to
do so.


.

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