#### Formula for calculating Gross Profit with muktiple discounts #2

```List Price less Disc1 less Disc2 equals Net Price. Sell price  less net
price equal profit divided by sell price equal gross margin percentage.

\$10 less 50% less 10% =\$4.50. Sell for \$12.50. \$6.00 less
\$4.50 =\$1.50. \$1.50/6.00 = 25% GP.

All of these figures are in cells of their own.  Cannot get this to
calculate correcly.

```
 0
carm (16)
9/25/2005 12:03:13 PM
excel 39879 articles. 2 followers.

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```CARM Wrote:
> List Price less Disc1 less Disc2 equals Net Price. Sell price  less net
> price equal profit divided by sell price equal gross margi
> percentage.
>
> \$10 less 50% less 10% =\$4.50. Sell for \$12.50. \$6.00 less
> \$4.50 =\$1.50. \$1.50/6.00 = 25% GP.
>
> All of these figures are in cells of their own.  Cannot get this to
> calculate correcly.
>

Following the data that you have, I am just wondering how you arrive
at \$6 --
which you defined as "Sell Price less net price." Based on you
calculations above,

Sell Price = \$ 12.50 (given)
Net Price = \$   4.50 (calculated as \$10 less 50% less 10%)

Hence, *the difference is \$8* (\$ 12.50 - \$ 4.50) and not \$6 as yo
indicated. Unless you can explain how you got \$6, I will simpl
consider this a typo and proceed with deriving the formulas required.

Assume the following entries are in the following cells:

List Price is in Cell A1
Disc1 is in Cell B1
Disc2 is in Cell C1
Net Price is in Cell D1
Sell Price is in Cell E1
Profit  ( Sell Price - Net Price ) is in Cell F1
GP percentage is in Cell G1

In Cell D1 :   =(1-C1)*A1*B1

NOTE: Format Cells C1 and B1 as % and Cell D1 as \$

In Cell F1 (formatted as \$), =E1-D1

In Cell G1 (formatted as %), =(F1-D1)/F1

The formulas that I have derived are based on the conditions that yo
stated in your problem. PERSONALLY, I just cannot understand you

You have the GP percentage calculated as

(Sell Price- Net Price)/Sell Price

but shouldn't you have

(Sell Price- Net Price)/Net Price

--
BenjieLo

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BenjieLop's Profile: http://www.excelforum.com/member.php?action=getinfo&userid=1101

```
 0
9/25/2005 1:54:34 PM

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