NexxTech 6500542 manual 134

The Gross Profit Margin (GPM) is the percentage of the sales price that is profit.

Price – Cost

––––––––––– × 100 = GPM

Price

Example 1: What is the original cost of an item selling for $200 with a gross profit margin of 33%? What is the profit?

You Press		You See
200 M+ × 33 +/– MU	M 134
M–	M	134
MR	M	66.

Example 2: What is the gross profit margin of an item costing $100 that sells for $150? What is the profit?

You Press		You See
100 M+ – 150	M –
MU	33.3333333333
150 M–	M	150
MR	M	–50.

Note: Disregard the minus (–) signs and read the gross profit margin as 33.3333333333% and the profit as $50.

You can also easily calculate an item’s discounted selling price, an

item’s final price with sales tax, and the profit.

Example 3: What is the final price of an item costing $70 with 5% sales tax? How much is the sales tax?

You Press	You See
70 × 5 MU	73.5
– 70 =	GT 3.5

Example 4: What is the final price of an item selling for $70 marked down 25%? How much is the discount?

You Press	You See
70 × 25 +/– MU	52.5
– 70 =	GT –17.5

Note: Disregard the minus (–) sign and read the discount as $17.5.

Example 5: Calculate the selling price of an item costing $100 with a 50% gross profit margin. What is the profit?

You Press		You See
100 ÷	50 MU	200
– 100	=	GT 100

Note: You cannot use the MU func- tion when F 0 2 3 4 A is switched to A,

8 Operation