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How to Compute Selling Price

Accounting is very helpful to compute selling price, if cost of goods and gross profit is given. With Simple formula of accounting, we can calculate selling price. This tutorial will be helpful for those who are not  in home at accounting.

For instance, if gross profit rate is 25% on sale and cost of product is Rs. 100, you can easily calculate selling price.

Gross profit = Sale - Cost

or Cost = Sale - Gross profit


If sale is 100 and gross profit is 25, then cost = 100- 25 = 75

If Cost is 75, then sale is 100

If Cost is 1, then sale is 100/75

If cost is 100, then sale or sale price = 100 X 100/75 = Rs. 133.33

To verify that a selling price of Rs. 133.33 will give us the correct gross profit, we subtract the cost of Rs. 100 from the Rs. 133.33 selling price. The result is a gross profit of Rs.33.33 which when divided by the selling price gives us the required gross profit rate of 30% (Rs. 33.33/Rs. 133.33 ).

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  1. its confusingg, what do u mean by ( of 30% (Rs. 33.33/Rs. 133.33 )

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Accounting Education: How to Compute Selling Price
How to Compute Selling Price
Accounting Education
https://www.svtuition.org/2010/10/how-to-compute-selling-price.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2010/10/how-to-compute-selling-price.html
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