• COGS is the cost of goods sold ($) • DM is the desired margin (%) ## How to Calculate Sales Price? The following example problems outline how to calculate Sales Price. Example Problem #1: 1. First, determine the cost of goods sold ($).
1. The cost of goods sold ($) is given as: 45. 2. Next, determine the desired margin (%). 1. The desired margin (%) is provided as: 25. 3. Finally, calculate the Sales Price using the equation above: SP = COGS / (1-DM/100) The values given above are inserted into the equation below: SP = 45 / (1-25/100) = 60 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

cost of goods sold (\$) = 80

desired margin (%) = 20

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

SP = COGS / (1-DM/100) = ?