• CP is the cost to make one pizza ($) • SM is the sale margin (%) ## How to Calculate Pizza Price? The following example problems outline how to calculate Pizza Price. Example Problem #1: 1. First, determine the cost to make one pizza ($).
1. The cost to make one pizza ($) is given as: 3.50. 2. Next, determine the sale margin (%). 1. The sale margin (%) is provided as: 40. 3. Finally, calculate the Pizza Price using the equation above: PP = CP / (1-SM/100) The values given above are inserted into the equation below: PP = 3.50 / (1-40/100) = 5.833 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

cost to make one pizza (\$) = 4.50

sale margin (%) = 20

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

PP = CP / (1-SM/100) = ?