Wednesday, March 01, 2006

Stock Card: Percentage Profit Margin

A new feature has been added to Stock Card, which calculates the percentage profit margin for the current Root PLU.

The percentage profit margin is calculated as follows.
Variables
CostPrice = 10.00
RetailPrice = 20.00
VATRate = 17.5%

Calculate BeforeVAT
BeforeVAT = RetailPrice / ( 1 + (VATRate/100))
BeforeVAT = 20.00 / ( 1 + (17.5/100))
BeforeVAT = 17.02128

Calculate Profit
Profit = BeforeVAT - CostPrice
Profit = 7.02128

Calculate Percentage Profit Margin
PerProfit = (Profit / BeforeVAT) * 100
PerProfit = (7.02128 / 17.02128) * 100
PerProfit = 0.4125 * 100
PerProfit = 41.25%

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