Math in the Workplace - Numbers & Operations
CONTAINER & PACKAGING SUPPLY INC.
Distributor of Containers
Business Owner
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Job Description: Figures costs, selling prices, manage employees, purchase equipment, arrange for long-term financing and make decisions for the direction of the company. |
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Problem:
I buy a product that costs me $10.00. I need to make a 20% gross profit (selling price – cost of goods sold). What should my selling price be? What will my gross profit be?
 CONTAINER & PACKAGING SUPPLY INC.
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Solution:
10 
.8 = $12.50 (not $12.00)
Selling price (100%) – Cost of Goods (80%) = Gross Profit (20%)
$12.50 - $10.00 = $2.50 gross profit