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Trying to break even on a sale using percentages & MS Excel

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  • 18-06-2016 10:58pm
    #1
    Sordini
    Registered Users Posts: 50 ✭✭


    [font=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif](A) An asset worth $536,627 [/font]
    [font=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif](B) The cost of selling is 7.5%[/font]
    [font=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif](C) My approach to estimate selling with out loss. This the best I could come up with, but I don't think its perfect. A + (A * 1 + B)*B = $579,893[/font]
    [font=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif](D) However.... 7.5% of C is = $43,492[/font]
    [font=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif](E) A + D = $580,119[/font]

    [font=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]Why is there a $226 variance between C and E? Is there a better way to get this to zero?[/font]


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    #2
    Bit cynical
    Registered Users Posts: 2,338 ✭✭✭Bit cynical


    Is the 7.5% cost of selling supposed to be applied to the ssset's worth (A) or the eventual sale price?

    If it is applied to the asset's worth then the sale price should be simply 536,627 ⨉ 1.075 = 576,874

    If it is to be applied to the sale price then the sale price needs to be 536,627 ÷ (1 - 0.075) = 580,137.


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    #3
    Sordini
    Registered Users Posts: 50 ✭✭Sordini


    @Bit cynical

    Thank you so much. You have made my day! Thanks


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