Formula for target sales to give desired %net profit with specific total costs and a specific gross profit %

Profit formula

Didn't find your answer?

Hi, 

My mind has gone blank - what would be the formula to calculate sales for a given NP% at a given %GP?

I've been using Excel's Goal Seek to flex the sales to give the desired %NP.

Replies (5)

Please login or register to join the discussion.

Routemaster image
By tom123
04th Jul 2016 19:19

Tried a few versions, but had to give up - waiting the answer from proper maths types ;)

Thanks (0)
avatar
By paulwakefield1
05th Jul 2016 09:24

Sales = Fixed costs/(GP%-NP%)

Thanks (1)
Replying to paulwakefield1:
avatar
By Numberwang
05th Jul 2016 09:34

Ah yes, that's it!

It seems so obvious now! Thanks!

Thanks (0)
Routemaster image
By tom123
05th Jul 2016 10:30

Tried again today - still struggling.
Can't say I've ever worked this way through, though.
I seem to start with the sales, and then work through to what the NP ends up being.

Thanks (0)
Routemaster image
By tom123
05th Jul 2016 10:33

Do you know, I got similar to Paul - but then must have been a little confused..
Must be that A level maths I didn't take :)

Thanks (0)