• C is the cost ($) • GM is the gross margin (%) ## How to Calculate Price? The following example problems outline how to calculate Price. Example Problem #1: 1. First, determine the cost ($).
1. The cost ($) is given as: 100. 2. Next, determine the gross margin (%). 1. The gross margin (%) is provided as: 50. 3. Finally, calculate the Price using the equation above: P = C/ (1-GM/100) The values given above are inserted into the equation below: P = 100/ (1-50/100) = 200 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

cost (\$) = 300

gross margin (%) = 25

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

P = C/ (1-GM/100) = ?