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Formulas are a huge part of my job. One of the primary areas that I use formulas hands on when quoting jobs. One of the formulas is to compute the selling price using weighted cost.
This formula reads as:
weighted cost x mark-up = sale price
The formula is the final formula. To compute the weighted cost, this is the formula:
cost + freight (item weight x cost per pound factor) = weighted cost
These formulas are vital in determining profit margins when quoting jobs. (that’s another set of formulas used on a continual basis). My company actually has a program set up that allows for putting the product number in and the net cost. The program then computes the freight based on the item that is in a special database that has the actual weight of the product. The entry then has the formula embedded so that it quotes the weighted cost, sale price, and extended amount based on quantities entered. This is not a difficult process but the use of computers makes it much more efficient. Doing it by hand can become time consuming especially when doing large quotes.
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Bettyboop04
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