Maybe I should have explained the math example I gave….
(All these is done on a Stupid “one calculation at a time" calculator)
Co-worker finds item he wants to sell in store.
The in price is 1000 units.
So he decides that the profit should be 500 units.
And to see if the price will be to steep he does the following calculation:
1000*1,25 (our local sales tax, and then he ads the profit) +500 that gives him a price of 1750units
But when he has to punch it into our computer system he has to remove the sales tax (the 25%)
So he does the calculation 1750*0.80= 1400 and punches that into the system.
The computer then sees that our profit margin is 400 units, he doesn’t!
But it took me forever to make him understand that profit has to be added to the in price before tax!
(All these is done on a Stupid “one calculation at a time" calculator)
Co-worker finds item he wants to sell in store.
The in price is 1000 units.
So he decides that the profit should be 500 units.
And to see if the price will be to steep he does the following calculation:
1000*1,25 (our local sales tax, and then he ads the profit) +500 that gives him a price of 1750units
But when he has to punch it into our computer system he has to remove the sales tax (the 25%)
So he does the calculation 1750*0.80= 1400 and punches that into the system.
The computer then sees that our profit margin is 400 units, he doesn’t!
But it took me forever to make him understand that profit has to be added to the in price before tax!
Comment