Mention the condition when the market price is equal to selling price?
Answers
Answer:
Cost Price is the price at which the Seller (Vendor) is purchasing the goods. Market Price is the price at which the Seller is selling the goods in the market. It can be referred to as Selling Price. Market Price includes profit margin.
Answer:
Selling Price
In the following section, we will define what we mean by the concept of Selling Price and see some solved examples that shall help us to solve the questions of Selling Price. Profit and loss is the branch of basic mathematics which deals with the study of profit and loss made in a business transaction. The profit and loss account is fundamentally a summary of the trading transactions of a business and shows whether it has made a profit or loss during a particular period of account. Indeed, by deducting the total expenditure from total income the profit or loss of a business can be calculated.
Selling Price
Price can be a sensitive issue. If priced too high, a dish may not sell or customers may complain or not return to the
business as they may feel they have not received value for money. Alternately, if a dish is underpriced and does not
make a profit, the business will be damaged financially and will face problems in the future if it does not rectify the
situation. A method to ensure that a profit margin is achieved is to build a target percentage of gross profit into the selling price.
Selling Price
For example, if the food costs for a dish total £3.00 and a gross profit target is set at 70%, the food costs as a percentage of the selling price can only represent 30%. It is important to note that the selling price is the total amount of money that will be received so this has to represent 100% for the purpose of this calculation. In basic terms, food costs + gross profit = selling price.