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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2607
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Need help with a math formula/equation. When my profit is

Customer Question

Need help with a math formula/equation. When my profit is below my bare minimum acceptable number, I would like to adjust my shipping amount to bring the profit to minimum. I can not wrap my head around how to back into the shipping cost adjustment.
Submitted: 1 year ago.
Category: Finance
Customer: replied 1 year ago.
These are my variables:
A. shipping cost
B. supplier cost
C. tax - (supplier cost + shipping) x 8% tax
D. total cost - ( supplier cost + shipping + tax)
E. minimum sales price - total cost x 1.25
F. marketplace fee - (minimum sales price x 15%)
G. net profit - minimum sales price - marketplace fee - total cost
The hard numbers are the supplier cost and the bare minimum profit I've set at $5
Expert:  Angie replied 1 year ago.
total cost x 1.25times 15%PLUS $5.00 EXAMPLE:total cost = 10.00x 1.25 % = .13 )new total 10.1310.13 x 15% fee =1.52 (new total 11.65) +5.00 profit (new total 16.65) (but since the marketplace fee will be charged on the 5.00 as well, you need to add 15% of the 5.00) = .75 new price 17.40 + shipping
Expert:  Angie replied 1 year ago. Here is a profit margin calculator that may help you as well