Working out profit percentages?

[Supplybus]

How to work out percentages - here's my question Any help would be appreciated.

I have a product and here are the cost detail. I need to work out a safe buffer to counter "exchange rate fluctuations" and Shipping.

Cost: £19.99
Duty: £3.7%
Vat: 17.5%
Shipping on 500 units at under 1 ton: £787

product needs to sell at around £49.99 (Distributor cost).

I am very bad at figures, can anyone help me formulate an model equation that would be a good buffer with regards to duty/vat/shipping?

[peterjhale]

Not sure what type of model you require, but I guess the answer to your question is:

net price 19.99
plus duty (3.7% of 19.99)
plus shipping 1.57 (787 / 500)
equals "landed cost" (22.30) - net of VAT

Then we need more info. EG: Are you being charged VAT on your purchase? Does the 49.99 include VAT in the selling price ? If the answer to both is YES,

then your margin is 20.24 which is a markup of about 100% and a margin of about 50%

(49.99 less VAT minus 22.30 landed cost)

- that's because to have to pay the VAT you charge on the selling price and reclaim the VAT you paid on the product (assumuning you are registered)

[Supplybus]

Many Thanks,

I guess I will have to charge vat to reclaim...oh well - Thanks very much for the help.

SB