How to Compute Selling Price in the Philippines: A Step-by-Step Guide
Learn how to calculate selling price in the Philippines using a simple formula for maximum profit.
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To compute the selling price in the Philippines, use this formula: Selling Price = Cost of Goods Sold (COGS) + Profit Margin. First, determine the COGS, which includes the cost of materials, labor, and overhead expenses. Next, decide on a profit margin percentage and add it to the COGS. For example, if COGS is PHP 100 and the desired profit margin is 20%, the selling price would be PHP 120. This ensures you cover costs and achieve your targeted profit.**
FAQs & Answers
- What is the formula for calculating selling price? The selling price is calculated as Selling Price = Cost of Goods Sold (COGS) + Profit Margin.
- How do I determine my profit margin percentage? To determine your profit margin percentage, evaluate your costs and decide how much profit you want to achieve above those costs.
- Why is calculating selling price important? Calculating selling price is essential to ensure that you cover all costs and achieve profitability in your business.
- What components are included in Cost of Goods Sold? COGS includes the cost of materials, labor, and overhead expenses incurred in producing goods.