Enter the cost of goods available for sale ($) and the retail value of goods available for sale ($) into the Calculator. The calculator will evaluate the Cost To Retail Ratio.

## Cost To Retail Ratio Formula

C:R = COGS / RVG * 100

Variables:

- C:R is the Cost To Retail Ratio (%)
- COGS is the cost of goods available for sale ($)
- RVG is the retail value of goods available for sale ($)

To calculate the Cost To Retail Ratio, divide the cost of goods available for sale by the retail value of those goods.

## How to Calculate Cost To Retail Ratio?

The following steps outline how to calculate the Cost To Retail Ratio.

- First, determine the cost of goods available for sale ($).
- Next, determine the retail value of goods available for sale ($).
- Next, gather the formula from above = C:R = COGS / RVG * 100.
- Finally, calculate the Cost To Retail Ratio.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

cost of goods available for sale ($) = 5000

retail value of goods available for sale ($) = 23400

## FAQ Section

**What is the significance of the Cost To Retail Ratio in business?**

The Cost To Retail Ratio is significant in business as it helps determine the efficiency of a company’s purchasing and pricing strategies. A lower ratio indicates that the company is able to purchase goods at a lower cost relative to their retail value, which can lead to higher profit margins.

**How can the Cost To Retail Ratio impact pricing strategies?**

The Cost To Retail Ratio can impact pricing strategies by providing insights into how much markup a business can apply while remaining competitive. Understanding this ratio helps businesses set prices that are both attractive to consumers and profitable for the company.

**Can the Cost To Retail Ratio vary by industry?**

Yes, the Cost To Retail Ratio can vary significantly by industry due to differences in markups, cost structures, and competitive landscapes. Industries with higher value-added products or services may exhibit higher ratios compared to those dealing in commodities or low-margin goods.

**Why is it important to calculate the Cost To Retail Ratio accurately?**

Accurately calculating the Cost To Retail Ratio is important because it directly affects decision-making related to inventory purchasing, pricing, and sales strategies. An inaccurate ratio could lead to pricing errors, reduced profit margins, and competitive disadvantages.