Consider this scenario:
1. buying_price + buying_gst = buying_total
and
2. selling_price + mark_up_gst = selling_total
You have buying_total , selling_total , and gst_percentage(on Mark up). How would you derive a formula for selling_price? Here is the derivation: (Note: '*' means multiply, '/' means divide)
Step 1:
selling_total = selling_price + mark_up_gst
Step 2:
selling_total = selling_price + (mark_up_amount*gst_percent/100)
Step 3:
selling_total = selling_price + [(selling_price-buying_total)*gst_percent/100]
Step 4:
(100*selling_total) = (100*selling_price) + [(selling_price-buying_total)*gst_percent]
Step 5:
(100*selling_total) = (100*selling_price) + (selling_price*gst_percent)-(buying_total*gst_percent)
Step 6:
(100*selling_total) = selling_price(100+gst_percent) - (buying_total*gst_percent)
Step 7:
(100*selling_total) + (buying_total*gst_percent) = selling_price(100+gst_percent)
Step 8:
selling_price(100+gst_percent) = (100*selling_total) + (buying_total*gst_percent)
Step 9:
selling_price = [(100*selling_total) + (buying_total*gst_percent)]/(100+gst_percent)
Step 10:
selling_price = [(100*selling_total) + (buying_total*gst_percent)]/(100+gst_percent)
So here we have the final formula we wanted to have:
selling_price = [(100*selling_total) + (buying_total*gst_percent)]/(100+gst_percent)
1. buying_price + buying_gst = buying_total
and
2. selling_price + mark_up_gst = selling_total
You have buying_total , selling_total , and gst_percentage(on Mark up). How would you derive a formula for selling_price? Here is the derivation: (Note: '*' means multiply, '/' means divide)
Step 1:
selling_total = selling_price + mark_up_gst
Step 2:
selling_total = selling_price + (mark_up_amount*gst_percent/100)
Step 3:
selling_total = selling_price + [(selling_price-buying_total)*gst_percent/100]
Step 4:
(100*selling_total) = (100*selling_price) + [(selling_price-buying_total)*gst_percent]
Step 5:
(100*selling_total) = (100*selling_price) + (selling_price*gst_percent)-(buying_total*gst_percent)
Step 6:
(100*selling_total) = selling_price(100+gst_percent) - (buying_total*gst_percent)
Step 7:
(100*selling_total) + (buying_total*gst_percent) = selling_price(100+gst_percent)
Step 8:
selling_price(100+gst_percent) = (100*selling_total) + (buying_total*gst_percent)
Step 9:
selling_price = [(100*selling_total) + (buying_total*gst_percent)]/(100+gst_percent)
Step 10:
selling_price = [(100*selling_total) + (buying_total*gst_percent)]/(100+gst_percent)
So here we have the final formula we wanted to have:
selling_price = [(100*selling_total) + (buying_total*gst_percent)]/(100+gst_percent)
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