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Compute Selling Price

How to compute selling price?

A Retailer want a 35% profit on the product when he retail it. He know the cost price i.e., INR 110

Selling Price - cost Price = Profit

SP- CP = 35% of SP

SP- CP = 35/100X SP

SP- CP = .35 SP

SP - .35 SP = CP

.65 SP = CP

SP = CP X100/65

We know CP = 110

SP = 110X100/65

SP = INR 169.23

You purchased wet fibre waste @ 70/- per Kg, on drying it lost 30% weight, now what is the cost price of balance material.?

Here the most important part in calculating the cost price is to keep in mind that it has lost the weight.

To calculate suppose you have bought 1000 kg Fibre waste @ 70/- per kg for Rs. 70000/-.

Now as it has lost 30% weight, now you have 700 kgs.

Means price of 700 kg is Rs. 70000.

Price of one kg is 70000/700 = Rs. 100/-

What is the difference between Income and Profit margin?

Profit margin is calculated on retail price and income calculated at amount invested means purchase price.

Suppose the purchase price of product is Rs 700/- and selling price is Rs. 1000

Its Profit Margin is 30% (R.300) Calulated as 300/1000 * 100

Income is Rs. 42.85% (Rs. 300) Calculated as 300/700 * 100

Your Product Price (MRP) is 1500 including 18% GST.
How will you calculate the basic selling price and the GST.


MRP = BSP(Basic Selling Price) + BSPX18%
MRP = BSP + BSPX 18/100
We know MRP is Rs. 1500/-
1500 = BSP(1 + 18/100)
1500 = BSP(100 +18)/100
1500 = BSP(118/100)
1500X 100 = BSP X 118
BSP= 150000/118
BSP= 1271
GST = 1500-1271
GST = 229

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