Calculate Selling Price for Cucumbers inc. VAT (42% Profit Margin)

• MHB
• LizQUIZE
In summary, the grocery store's goal is to have a profit margin of 42% from the selling price of cucumbers, excluding wastage. To determine the selling price including VAT, we need to consider the purchase price of $1.30 (without VAT) and the fact that only 90% of the purchased cucumbers can be sold due to wastage. The VAT for food in 2016 is 14%. To achieve a profit of 42% of the selling price, the equation 0.9p - 0.14(0.9p - 1.3) = 0.42 must be solved, where p represents the selling price. LizQUIZE The grocery stores goal profit margin is 42% from selling price apart from the wastage. What is the selling price for the cucumbers including VAT when the purchase price (without VAT) is 1,30$ and about 90 % are sold from the purchased cucumbers? The VAT for food is 14 % year 2016.I do not know where to start with this one.

Last edited:
Suppose n cucumbers are bought for 1,30 the total cost is 1,30n. Let the selling price be p. If, because of wastage, on 90% of those cucumber, 0,9n, can be sold, you will bring in 0,9np. Your "value added" will be (0,9np- 1,30n)= (0,9p- 1,30)n so VAT will be 0,14(0,9- 1,30)n. You want to make a profit of 42% of the selling price so you want 0,9np- 0,14(0,9- 1,30)n- 1,30n= 0.42n. Divide through by n to get 0,9p- 0,14(0,9p- 1,3)= 0,42. Solve that equation for p.
(I had to drop all currency signs because they were interpreted as delimiters.)

1. How do I calculate the selling price for cucumbers including VAT?

To calculate the selling price for cucumbers including VAT, you will need to first determine the cost of the cucumbers. This includes the cost of purchasing the cucumbers, transportation fees, and any other expenses related to obtaining the cucumbers. Once you have the cost, you can add 42% of the cost to get the profit margin. Finally, add the profit margin to the cost to get the selling price including VAT.

2. What is the profit margin percentage for selling cucumbers?

The profit margin percentage for selling cucumbers is 42%. This means that 42% of the cost of the cucumbers will be added to the selling price as profit.

3. Do I need to include VAT in the selling price for cucumbers?

Yes, VAT (Value Added Tax) should be included in the selling price for cucumbers. VAT is a tax that is added to the selling price of goods and services in many countries, including the UK where it is currently 20%. It is important to include VAT in the selling price to ensure that you are properly accounting for the tax and not losing money on the sale.

4. Can I change the profit margin for selling cucumbers?

Yes, you can change the profit margin for selling cucumbers. The profit margin is typically determined by the company or individual selling the cucumbers and can vary depending on factors such as competition, market demand, and production costs. However, it is important to ensure that the profit margin is high enough to cover expenses and generate a profit.

5. Is there a formula for calculating the selling price for cucumbers including VAT?

Yes, there is a formula for calculating the selling price for cucumbers including VAT. The formula is: Selling Price = Cost + (Cost x Profit Margin) + (Cost x VAT). This formula takes into account the cost of the cucumbers, the profit margin, and the VAT to determine the final selling price. It is important to use this formula to ensure accuracy and avoid losing money on the sale.

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