maffs

[floppybootstomp]

My daughter has an exam/test coming up soon and she has been given an example of a test paper. I've managed to show her how to do most of the maths questions but for some odd reason this one eludes me:

If an item costs £1.20 to produce and the selling price (excluding VAT) is £1.95 what is your gross profit in percentage terms?

Now, assuming the 'excluding VAT' applies to all figures I make that to be what percentage of 120 is 75?

So how do I do that then?

She's allowed to use a calculator. I've a feeling I'm going to kick myself if and when I find a solution.

 

[Ian]

I think you'll need to calculate the percentage profit compared to the sales price to work out your profit margin:

Gross Profit = £1.95 - £1.20 = £0.75

Gross Profit as % = (75/195) * 100 = 38.462%

Hope that helps

 

[V_R]

I hate maths... lolol

 

[nivrip]

Errr........

I reckon the profit is 75p on a £1.20 outlay which means 75/120 x 100 = 62.5%.

I think.

 

[floppybootstomp]

Aye, I'm a little confused also.

The formula is correct - thank you Ian - but I reckon if the outlay was 120 and the profit was 75 then surely 75 as a percentage of 120 would be the profit percentage?

The figure of 195, after all, contains both profit and outlay.

And V_R, maths was never my forte at school but I had to learn a lot of it again some years ago when I took my City & Guilds Pt 3 Electronic Servicing exams.

Must confess I found it more interesting then than I did at school.

Always did prefer English though.

 

[Urmas]

Um... this isn't maffs... business "maffs" is to mathematics what muzak is to music. The key here is to know the definition – and NOT to think too much:

Gross Profit Margin = (Revenue - Cost of Goods Sold)/Revenue (x100 %)


U=U

 

[floppybootstomp]

Um... this isn't maffs... business "maffs" is to mathematics what muzak is to music. The key here is to know the definition – and NOT to think too much:

Gross Profit Margin = (Revenue - Cost of Goods Sold)/Revenue (x100 %)


U=U

Smartarse

 

[Urmas]

The above statement is true for all values of U.

 

[Ian]

...but I reckon if the outlay was 120 and the profit was 75 then surely 75 as a percentage of 120 would be the profit percentage?

I know what you mean, as that would seem like a logical way to do it - but as it's a percentage on "gross profit", I think it works on the sale (revenue) cost, like Urmas posted.

So if you think about it backwards, that's like saying that on something that costs £1.95 there's a 38.462% gross profit (75p) .

... I think

 

[muckshifter]

a three pack of walnut whirls has been £1.01 for ages, never could work out what the f the 1p was all about?

now I see they are £1.51 ... they taking the 'P' or what


Bottom line, retail maffs are a feckin joke on us!!


You are allowed to get any answers wrong, you just won't get a job as a checkout girl.

 

[floppybootstomp]

Ya know, one job I could never do is be a check out girl.

dang, that's a girly job for sure yet now I see all these decidely male peeps at the tills.

I couldn't do that.

Ok, I'm old and sexist, but hey...

Sainsburys have put the price of Pot Noodles up from 87p to £1.10. How is that justified?

To protect us from ourselves, maybe?

Asdas, however, are doing 4 for three quid

Don't knock Pot Noodles, all you health & nutritionist nuts, they is good

 

[crazylegs]

Don't knock Pot Noodles, all you health & nutritionist nuts, they is good

The noodles are diamond..
All the chemicals and other crap that go in them are whats gonna do ya over time though..

Sorry this is a maths thread isn't it not a noodle thread, is there an equation for noodles + chemicals = upset tummy..