calculating selling price

Hi,

Hopefully I've interpretted your three mechanisms correctly. The formulas are in the spreadsheet provided.

Here's an explanation of the derivation of each of the three, since I think that's probably what you're more interested in.

Please note for the following I shifted the cost Direct Cost to cell G8 and added a cell for Commission % in cell G9.

For the below, the legend is as follows:

Price = Selling Price
Comm = Commission
Comm% = Commission Percentage
Cost = Cost
Profit = Profit
Profit% = Profit Percentage

1. Fixed Profit

Price = Cost + Comm + Profit
Price = Cost + Price*Comm% + Profit
Price - Price*Comm% = Cost + Profit
Price * (1 - Comm%) = Cost + Profit
Price = (Cost + Profit) / (1 - Comm%)

Price =(G8+G4)/(1-G9)

2. Cost Plus %

Assuming Profit is supposed to be total cost (Direct Cost + Commission) times the Profit %.

Price = Cost + Comm + Profit
Price = Cost + Comm + (Cost + Comm)*Profit%
Price = Cost + Price*Comm% + (Cost + Price*Comm%)*Profit%
Price = (Cost + Price*Comm%)*(1 + Profit%)
Price = Cost*(1 + Profit%) + Price*Comm%*(1 + Profit%)
Price - Price*Comm%*(1 + Profit%) = Cost*(1 + Profit%)
Price (1 - Comm%*(1 + Profit%)) = Cost*(1 + Profit%)
Price = Cost*(1 + Profit%)/(1 - Comm%*(1 + Profit%))

Price =(G8*(1+G6))/(1-G9*(1+G6))

3. Fixed % Profit off Selling Price

Assuming Profit should equal Selling Price times the Profit Percentage.

Price = Cost + Comm + Profit
Price = Cost + Price*Comm% + Price*Profit%
Price - Price*Comm% - Price*Profit% = Cost
Price (1 - Comm% - Profit%) = Cost
Price = Cost / (1 - Comm% - Profit%)

Price =G8/(1-G9-G5)
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All three of these are provided in the spreadsheet separately (see column J). Additionally, all three are combined into cell D4.

S