HernanDRS said: If you buy something for 80 dollars, you want a profit of 20% and you pay a tax of 20%, you will be selling it at 120 dollars.
The product cost me 80 dollars, i want to sell it with a profit of 20%, you dont add 1.20(Youll get, 96 dollars). You divide 80 dollars for 80%(the other 20% is your profit), and you get the final price of 100 dollars. The product costs 100 dollars, it has a tax of 20%, you will get a final price of 120 dollars cause you ADD them, you multiply it for 1.2.
When you say it is 50% more powerful, you get that something is 100% as the base, the other one is twice the power, 200%. Out of 200, 100 is the 50%(base) and the other 100 is the 50%(more powerful). |
Actually, that's exactly what you do, and the thing you did when calculating the taxes. I'll use your example:
The basic cost is 80. You give it the value of 100%. If you want to have a profit of 20% you have to sell it for the basic cost + your profit, 100 % + 20 % = 120% of the original price. Now, using a simple "rule of three" you end with this:
80 €/$ | 100 % |
??? | 120 % |
Your selling price, ??? is 80*120/100 = 80*1.2 = 96 €/$
If you add another 20 % for taxes you have to remember that the base price now is 96, so if you add another 20 % you end with
96 €/$ | 100 % |
??? | 120 % |
You will sell the product for 96*120/100 = 96*1.2 = 115.20 €/$
Please excuse my bad English.
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