100% As example, if you multiply US$ 50.00 by 0.5 alone, you will end up with only US$ 25.00 an not 75, because in reality 0.5 is 50%. You are subtracting half of the price, and not increasing it by its half. You want to receive 100% of the cost of production + 50% of markup So, to get this +50% of markup above the actual 100% of production cost, you need multiply US$ 50 by 1.5 (wich means 150% _ 100% to maintain the production price and 50% to add the markup price_) The formula used is the rule of three, but in the video is used its simplified version inside that greater formula. _ The complete formula: 100/150 = 50/X or, to you understand each value: 100%/150% = US$50/US$ X _ The simplified formula: 50*1.5 Search more about the rule of three to understand how it works, its extremely simple.
Brilliant video, thanks for putting everything in a concise manner.
Glad it was helpful!
What does the 1 represent in the formula for cost plus formula?. On the internet i cant find this specific formula for cost plus method
100%
As example, if you multiply US$ 50.00 by 0.5 alone, you will end up with only US$ 25.00 an not 75, because in reality 0.5 is 50%. You are subtracting half of the price, and not increasing it by its half.
You want to receive 100% of the cost of production + 50% of markup
So, to get this +50% of markup above the actual 100% of production cost, you need multiply US$ 50 by 1.5 (wich means 150% _ 100% to maintain the production price and 50% to add the markup price_)
The formula used is the rule of three, but in the video is used its simplified version inside that greater formula.
_ The complete formula:
100/150 = 50/X
or, to you understand each value: 100%/150% = US$50/US$ X
_ The simplified formula:
50*1.5
Search more about the rule of three to understand how it works, its extremely simple.
Thanks
So you are just reading the screen?