Determining the Sale Price for Doubling Profit Percentage
Suppose a painting was purchased for ?2000 and then sold for ?2400. The profit from this transaction is ?400. We can calculate the profit percentage using the formula:
Profit percentage (Profit / Cost Price) × 100
Substituting the given values, we get:
Profit Percentage (400 / 2000) × 100 20%
To double the profit percentage, the new profit percentage should be 40% (2 × 20%). Now, we need to determine the new sale price (SP) that will yield this new profit percentage. The formula for the sale price to achieve a desired profit percentage is:
SP (Cost Price Desired Profit) / (1 - (Desired Profit Percentage / 100))
Double the Profit
Given:
Cost Price (CP) ?2000 Original Sale Price (SP) ?2400 Original Profit ?2400 - ?2000 ?400 Original Profit Percentage 400 / 2000 × 100 20% Desired Profit Percentage 2 × 20 40%To double the profit:
1. Calculate the required profit amount: Desired Profit 2 × Original Profit 2 × 400 ?800
2. Add this to the cost price to get the new sale price:
SP 2000 800 ?2800
Conclusion
If the painting is sold for ?2800, the profit percentage will be doubled to 40%. This is the final sale price that achieves the desired profit percentage:
Final Sale Price ?2800
This article covers the essential steps and formulas used to calculate the sale price for doubling the profit percentage, which is a practical concept in the field of sales and marketing, particularly for those dealing with artworks and collectibles.