Ok so this should be pretty basic but I am just gut checkign myself!
I have a P&L - where we for example make 13% of a budget in commission.
So example. Cost is $75,500 - and we make 13% on top of that.
I know in excel percentages can be funky so... should I be figuring out the commission by either A OR B below?
A. $75,500 *13% = $9.815 in commission
OR
B. $75,500 - ($75,500/1.13) = $8,685 in commission.
And which one is correct and why? HELP!
Thanks!
If the 75000 is the BEFORE commission price, then A will get you what to add on as commission.
Ali
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In A you are saying commission is in addition to cost.
In B you are saying commission is already included in the cost - and by extension the 'cost' was $66815.
Only you can determine this. It all depends on what picture you are trying to convey.
Richard Buttrey
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If you get a percentage of sales as a commission, then your commission comes out of the sales price, and A is correct.
Entia non sunt multiplicanda sine necessitate
No, percentages in excel work perfectly fine.Originally Posted by degross77
A percentage of a number is ALWAYS that number TIMES the percentage...10% of 100 = 10. Simple as that, dont try to over think this
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