The formula value determines how the dollar amount of the level price will be calculated for each item.

 

•The % Of Sell Price formula is also known as "markup percent" and is calculated using the formula

COST / ((100 - PERCENTAGE) / 100)

 

•The % Of Cost formula is also known as "add-on percent" and is calculated using the formula

COST / ((PERCENTAGE / 100) + 1)

 

 

 

In this example we will take an item with a cost of  $15.00 and apply a 20% markup using each of the formula options

 

% of Sell Price ==> 15.00 / ((100 - 20) / 100) = $18.75

% of Cost       ==> 15.00 * ((20 / 100) + 1)   = $18.00

 

 

The settings of the Rounding Method and/or the Rounding Level may also come into play when determining the selling price. The above example was calculated on the assumption the rounding method was set to <none>.