ZALT@aol.com on wed 19 feb 97
Bill Hall correctly pointed out that I had some poor caluclations in my last
post. He was correct. I must have still been full of the flu. I can`t
believe I was so far out in left field.
The Third paragraph should read as follows:
...... If we represent our wholesale price as $X then $6.56 would represent
2/3 of the wholesale price. To find $X all we have to do is divide $6.56 by
2/3 or .66 In our case the whosale price would be $9.93 per mug............
.......... In our case we would have to suggest a mug sell for $19.00 to
$20.00 when we sell wholesale and $16.00 to $17.00 when we consign at 60%.
It follows that the fifth para be amended to read:
...........For example if we can produce 10 ready to sell mugs per hour,
(double our initial calculation) the wholesale price for our mugs would be
equal to (((($38.350.00/ (6662 X2)) + $0.81)/.66 ) = $5.58 This will give
us a retail selling price of $10.66.
I realize the the figures don`t completly match up with Bills because I am
not rounding up to .67 when I convert the fraction 2/3 to a decimal. The
formula used by Bill is a good method to check the figures once you arrive
at the the whosale price. In this case the (selling price minus the cost
price) divided by the selling price)) times 100 gives 34% which is close
enough for me.
Again who said potters don`t need math.
Terrance F Lazaroff
St Hubert, Quebec, Canada!!!