So I am working on a spreadsheet for a Butchery I manage and have run into a problem.
First off back story: We do $20 packs for certain bulk products that have a min/max weight range.
The Goal is to be able to put in this spreadsheet the desired minimum GP% and from that get a maximum weight based off that minimum profit margin.
For example a Beef Steak that Costs $17.50 p/kilo Would be minimum of 680g (at a GP% of 30.30%) and a maximum weight of 790g (at a GP% of 20.50%)
I have been 'googling' all day, and banging my head on my desk (as well as experimenting with different formula's) I am starting to think I may have to resort to programming a macro to perform this but I would prefer to be able to achieve in a formula on the cell that way I can copy-paste easily down the spreadsheet. If anyone has a solution or can put me on the right track would be Awesome.
I think the formula you are looking for is :
your selling price (=20$) / your mark up on cost
where your mark up is :
your cost per kilo / (1- your margin)
So for 20% expected GP it gives :
= 20 / (17.5 / (1-0.2))
= 20 / 21.875
= 0.914... kilos
Balance is then :
Revenue = 20$
Cost = 0.914 * 17.5 = 16
Margin = 4
Margin % = 20