NexxTech 6500542 - Manual (Page 8)

8
Operation
The Gross Profit Margin (GPM) is the
percentage of the sales price that is
profit.
Price – Cost
––––––––––– × 100 = GPM
Price
Example 1: What is the original cost
of an item selling for $200 with a
gross profit margin of 33%? What is
the profit?
You Press You See
200 M+ × 33 +/– MU M 134
M– M 134
MR M 66.
Example 2: What is the gross profit
margin of an item costing $100 that
sells for $150? What is the profit?
You Press You See
100 M+ – 150
MU M –
33.3333333333
150 M– M 150
MR M –50.
Note: Disregard the minus (–) signs
and read the gross profit margin as
33.3333333333% and the profit as
$50.
You can also easily calculate an
item’s discounted selling price, an
item’s final price with sales tax, and
the profit.
Example 3: What is the final price of
an item costing $70 with 5% sales
tax? How much is the sales tax?
You Press You See
70 × 5 MU 73.5
– 70 = GT 3.5
Example 4: What is the final price of
an item selling for $70 marked down
25%? How much is the discount?
You Press You See
70 × 25 +/– MU 52.5
– 70 = GT –17.5
Note: Disregard the minus (–) sign
and read the discount as $17.5.
Example 5: Calculate the selling
price of an item costing $100 with a
50% gross profit margin. What is the
profit?
You Press You See
100 ÷ 50 MU 200
– 100 = GT 100
Note: You cannot use the MU func-
tion when F 0 2 3 4 A is switched to A ,