Welcome to this article on exercises on business calculations and more precisely on 11 commercial calculation exercises Première Bac Pro. Here you will find no less than 11 detailed corrected management exercises on commercial calculations for Operational Management.
At the end of this article, you will know how to calculate brand rates, margin rates, sales prices excluding tax or tax without any worries.
In this section:
- App: Tiny’s Electronics Store
- Application: Valley cheeses
- Application: Chocolate Factory Delicacy
- Application: Gourmet Cheeses
- Application: Gourmet Chocolates
- Application: SoFinCo Company
- Application: Wood and Rags
- Application: La Chocolaterie des Délices
- Application: The fruits of the Earth
- Application: Dupont Couture House
- Application: House of Treats
App: Tiny’s Electronics Store
States :
Tiny’s Electronics is a small retail company specializing in electronic devices. For the current financial year, she is purchasing a Samsung LED TV with a purchase price excluding tax (PA excluding tax) of €400. She plans to sell this television with a margin rate of 20%. The company managed to sell 50 units of this television model during the year.
Work to do :
1. Calculate the sales price excluding tax (PV excluding VAT) of the TV.
2. Determine the sales price including tax (PV including tax) of the TV, considering a VAT rate of 20%.
3. Calculate the VAT value.
4. Evaluate the unit margin generated by the sale of the TV.
5. Calculate the company's overall margin for the year for this television model.
Proposed correction:
1. The PV excluding tax is calculated by adding the margin to PA excluding tax. In formula, this gives PV HT = (PA HT x (1 + margin rate/100)). In our case, the PV excluding tax = €400 x (1 + 20/100) = €480.
2. The PV including VAT is calculated by adding VAT to the PV excluding VAT. In the formula, this gives PV including tax = PV excluding tax x (1 + VAT rate/100). In this case, the PV including tax = €480 x (1+20/100) = €576.
3. The value of VAT is the difference between the PV including VAT and the PV excluding VAT. So, VAT = PV including VAT – PV excluding VAT = €576 – €480 = €96.
4. The unit margin is the difference between the PV HT and the PA HT. So, unit margin = PV excluding tax – PA excluding tax = €480 – €400 = €80.
5. The overall margin is the unit margin multiplied by the quantity sold. So, overall margin = unit margin x quantity sold = €80 x 50 = €4.
Summary of Formulas Used:
| Formula | Description |
|---|---|
| PV excluding tax = PA excluding tax x (1 + margin rate/100)) | To calculate selling price excluding VAT |
| PV including VAT = PV excluding VAT x (1 + VAT rate/100) | To calculate selling price including VAT |
| VAT = PV including VAT – PV excluding VAT | To calculate the value of VAT |
| Unit margin = PV excluding tax – PA excluding tax | To calculate the unit margin |
| Overall margin = Unit margin x quantity sold | To calculate the total margin |
Application: Valley cheeses
States :
Les Fromages de la Vallée is a company specializing in the sale of cheeses. She buys a type of cheese at a unit price of €3 excluding tax. The company applies a brand rate of 30%. She currently sells 500 units of this cheese per month. The VAT rate is 20%.
Work to do :
1. Calculate the Sales Price excluding tax (PV excluding tax).
2. Calculate the Sales Price All Taxes Included (PV including VAT).
3. Calculate the VAT amount.
4. Calculate the unit margin.
5. Calculate the overall margin.
Proposed correction:
1. The formula to calculate PV HT is PA HT ÷ (1 – Mark rate):
The mark rate being given as a percentage, it must be transformed into a decimal number by dividing it by 100. So the mark rate is 30 ÷ 100 = 0,3.
So, PV excluding tax = €3 ÷ (1 – 0,3) = €4,29.
2. VAT is calculated by multiplying the PV excluding VAT by the VAT rate. So, VAT = €4,29 x (20 ÷ 100) = €0,858.
The PV including VAT is calculated by adding VAT to the PV excluding VAT. So, PV including tax = €4,29 + €0,858 = €5,15.
3. As calculated previously, the VAT amount is €0,858.
4. The unit margin is found by subtracting the purchase price excluding taxes from the selling price excluding taxes. Thus, unit margin = €4,29 – €3 = €1,29.
5. To find the overall margin, multiply the unit margin by the quantity sold. Thus, overall margin = €1,29 x 500 = €645.
Summary of Formulas Used:
| Unit margin | = PV HT – PA HT |
| Overall margin | = Unit margin x quantity sold |
| VAT | = PV excluding VAT x VAT rate |
| PV including tax | = PV excluding VAT + VAT |
| PV HT | = PA excluding tax ÷ (1 – Brand rate) |
Application: Chocolate Factory Delicacy
States :
Chocolaterie Delicacy produces artisanal chocolates. It recently introduced a new type of chocolate truffle to its assortment. The purchase price excluding taxes (PA excluding VAT) is €1,50 per piece. The chocolate factory has decided to mark a margin rate of 100%. In addition, it sells these truffles in boxes of 6. The applicable VAT rate is 20%.
Work to do :
1. Calculate the sales price excluding tax (PV excluding VAT) of chocolate.
2. Calculate the VAT amount.
3. Calculate the sales price all taxes included (PV including VAT) of the chocolate.
4. Calculate the unit margin.
5. Calculate the overall margin obtained from the sale of a box of 6 chocolates.
Proposed correction:
1. The sales price excluding tax (PV HT) is calculated by adding a margin percentage to the purchase price (PA HT). Here we have a margin rate of 100%. So, PV HT = PA HT + (PA HT x Margin rate). Which gives PV excluding tax = €1.50 + (€1.50 x 100 ÷ 100) = €1.50 + €1.50 = €3
2. The amount of VAT is calculated by multiplying the sales price excluding tax (PV excluding VAT) by the VAT rate. Here, the VAT rate is 20%. So, VAT = PV excluding VAT x VAT rate = €3,00 x 20 ÷ 100 = €0,60
3. The sales price all taxes included (PV incl. VAT) is calculated by adding the amount of VAT to the sales price excluding taxes (PV excluding VAT). So, PV including VAT = PV excluding VAT + VAT = €3,00 + €0,60 = €3,60
4. The unit margin is calculated by subtracting the purchase price excluding tax (PA excluding tax) from the selling price excluding tax (PV excluding tax). Unit margin = PV excluding tax – PA excluding tax = €3,00 – €1,50 = €1,50
5. The overall margin is calculated by multiplying the unit margin by the quantity sold. As the Delicacy Chocolate Factory sells in boxes of 6, the overall margin would therefore be Overall margin = Unit margin x Quantity sold = €1,50 x 6 = €9,00
Summary of Formulas Used:
| Formulas | Explanation |
|---|---|
| PV excluding tax = PA excluding tax + (PA excluding tax * Margin Rate) | Calculation of the Sales Price excluding taxes |
| VAT = PV excluding VAT * VAT rate | Calculation of the amount of Value Added Tax |
| PV including VAT = PV excluding VAT + VAT | Calculation of the Sale Price All Taxes Included |
| Unit margin = PV excluding tax – PA excluding tax | Calculation of Unit Margin |
| Overall margin = Unit margin * Quantity sold | Calculation of the Overall Margin |
Application: Gourmet Cheeses
States :
Assume that you work for “Les Fromages Gourmands”, a company that produces and sells several types of cheese. One of their products is “Roquefort AOP” whose purchase price excluding taxes (PA HT) is €10 per unit. In 2020, the company sold this cheese at a selling price excluding tax (PV excluding VAT) of €15 and managed to sell 2 units.
For 2021, the company plans to increase the PV excluding tax to €18 with the aim of increasing the margin. Please note that the VAT rate is 20%.
Work to do :
1) Calculate the unit margin and overall margin for 2020.
2) What are the margin and brand rates for 2020?
3) Calculate the PV including tax for 2021.
4) If the company manages to sell the same quantity in 2021 as in 2020, what would be the new unit margin and the new overall margin?
5) What will the new margin and brand rates be for 2021 if the company sells the same number of units?
Proposed correction:
1) The unit margin is calculated as follows: Unit margin = PV excluding VAT – PA excluding VAT = €15 – €10 = €5. So, the overall margin, which is the unit margin multiplied by the quantity sold, is €5 x 2000 = €10.
2) The Margin Rate is calculated as follows: Margin Rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) = ((€15 – €10) ÷ €10) x 100 = 50%. The Brand Rate is calculated using the following formula: Brand Rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) = ((€15 – €10) ÷ €15) x 100 = 33,33, XNUMX%.
3) For 2021, the PV including tax is obtained by the following formula: PV including tax = PV excluding tax + (PV excluding tax x VAT rate) = €18 + (€18 x 20%) = €21.6.
4) For 2021, the unit margin is: Unit margin = PV excluding tax – PA excluding tax = €18 – €10 = €8. The overall margin would therefore be €8 x 2000 = €16.
5) The 2021 margin rate is ((€18 – €10) ÷ €10) x 100 = 80%. The mark rate for 2021 is ((€18 – €10) ÷ €18) x 100 = 44,44%.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| Unit margin | PV HT – PA HT |
| Overall margin | Unit margin x Quantity sold |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |
| PV including tax | PV excluding VAT + (PV excluding VAT x VAT rate) |
Application: Gourmet Chocolates
States :
Les Chocolats Gourmands is a company that manufactures and sells high quality chocolates. Like all traders, its managers want to achieve good sales figures. Here is some information on one of their flagship products:
– Purchase price excluding tax (PA excluding tax): €3,00
– VAT rate applied: 5,5%
– Quantity sold: 1500 units
– The Sales Price excluding tax (PV excluding tax) is 30% more than the Purchase Price excluding tax
Work to do :
1. Calculate the Sales Price excluding tax (PV excluding tax).
2. Calculate the Sales Price including tax (PV including tax)
3. Calculate VAT
4. Calculate unit margin and overall margin
5. Calculate margin rate and brand rate
Proposed correction:
1. The calculation to obtain the Sales Price excluding tax is as follows: PV excluding tax = PA excluding tax + (PA excluding tax x 30%) = €3,00 + (€3,00 x 0,30) = €3,90
2. To obtain the Sales Price including VAT, we add VAT to the Sales Price excluding VAT: PV including VAT = PV excluding VAT + (PV excluding VAT x VAT rate) = €3,90 + (€3,90 x 0,055) = 4,12 .XNUMX €
3. To calculate VAT, we subtract the Sales Price excluding VAT from the Sales Price including VAT: VAT = PV including VAT – PV excluding VAT = €4,12 – €3,90 = €0,22
4. The unit margin is the difference between the Sales Price excluding tax and the Purchase Price excluding tax: Unit margin = PV excluding tax – PA excluding tax = €3,90 – €3,00 = €0,90. The overall margin is the unit margin multiplied by the quantity sold: Overall margin = Unit margin x Quantity sold = €0,90 x 1500 = €1350
5. The margin rate is calculated by subtracting the Purchase Price excluding tax from the Sales Price excluding tax, all divided by the Purchase Price excluding tax and multiplied by 100: Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 = ((€3,90 – €3,00) ÷ €3,00) x 100 = 30%. The brand rate is calculated by subtracting the Purchase Price excluding tax from the Selling Price excluding tax, all divided by the Sales Price excluding tax and multiplied by 100: Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 = ((€3,90 – €3,00) ÷ €3,90) x 100 = 23%
Summary of Formulas Used:
| Formula | Description |
|---|---|
| PV HT = PA HT + (PA HT x 30%) | Calculate the Sales Price excluding tax |
| PV including VAT = PV excluding VAT + (PV excluding VAT x VAT rate) | Calculate the Sales Price including tax |
| VAT = PV including VAT – PV excluding VAT | Calculate the VAT amount |
| Unit margin = PV excluding tax – PA excluding tax | Calculation of unit margin |
| Overall margin = Unit margin x Quantity sold | Calculation of the overall margin |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 | Calculation of the margin rate |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 | Calculate mark rate |
Application: SoFinCo Company
States :
The company SoFinCo purchases items at a purchase price excluding tax (PA excluding tax) of €150 per unit. She sells these items at a sales price excluding tax (PV excluding VAT) of €200. SoFinCo sold 100 items this month. This company applies a VAT rate of 20%.
Work to do :
1. Calculate the sales price all taxes included (PV including VAT) of an item.
2. Calculate the VAT amount per item.
3. Calculate the unit margin.
4. Calculate the overall margin.
5. Calculate margin rate and brand rate.
Proposed correction:
1. The sales price all taxes included (PV incl. VAT) of an item is calculated by adding VAT to the sales price excluding tax (PV excl. VAT). To calculate VAT, multiply the PV excluding VAT by the VAT rate. The PV including VAT is therefore: PV excluding VAT + (PV excluding VAT * VAT rate) or €200 + (€200 * 20/100) = €240.
2. The amount of VAT per item is calculated by multiplying the PV excluding VAT by the VAT rate, i.e.: €200 * 20/100 = €40.
3. The unit margin is calculated by subtracting the purchase price excluding tax (PA excluding tax) from the selling price excluding tax (PV excluding tax). Or: PV excluding tax – PA excluding tax = €200 – €150 = €50.
4. The overall margin is calculated by multiplying the unit margin by the number of products sold. Or: Unit margin x Quantity sold = €50 x 100 = €5000.
5. The margin rate is calculated by subtracting the PA excluding tax from the PV excluding tax, then dividing the result by the PA excluding tax and multiplying this figure by 100 to obtain a percentage. The margin rate is therefore ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) = ((€200 – €150) ÷ €150) x 100 = 33,33%. The mark rate is calculated by subtracting the PA HT from the PV HT, then dividing the result by the PV HT and multiplying by 100 to get a percentage. The brand rate is therefore ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 = ((€200 – €150) ÷ €200) x 100 = 25%.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| PV including tax | PV excluding VAT + (PV excluding VAT x VAT rate) |
| VAT amount | PV excluding VAT x VAT rate |
| Unit margin | PV HT – PA HT |
| Overall margin | Unit margin x Quantity sold |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |
Application: Wood and Rags
States :
Bois et Chiffons is a company that specializes in the sale of furniture and home textiles. One day, the company receives a batch of 200 chairs at €50 each excluding tax (excluding tax) and wishes to sell them to its existing customers. The company decides to sell the items with a margin rate of 80%. The applicable VAT is 20%.
Work to do :
1. What is the Sales Price excluding tax (PV excluding tax) of each chair?
2. What is the VAT value for each chair?
3. What is the Sales Price All Taxes Included (PV including VAT) of each chair?
4. What is the Brand Rate of each chair?
5. What is the overall margin obtained from the sale of the entire lot of chairs?
Proposed correction:
1. To calculate the PV excluding tax, use the formula: PA excluding tax x (1 + Margin rate). Here it comes to €50 x (1 + 0,80) = €90.
2. To calculate the VAT value, use the formula: PV excluding VAT x VAT rate. Here, this gives €90 x 0,20 = €18.
3. To obtain the PV including VAT, add the PV excluding VAT and VAT: €90 + €18 = €108.
4. The brand rate is calculated using the formula: (PV excluding tax – PA excluding tax) ÷ PV excluding tax x 100. Which gives here: (€90 – €50) ÷ €90 x 100 = 44,44 %.
5. Finally, the overall margin is obtained by multiplying the unit margin by the quantity sold: (€90 – €50) x 200 = €8.
Summary of Formulas Used:
| PV HT | = PA excluding tax x (1 + Margin rate) |
| VAT value | = PV excluding VAT x VAT rate |
| PV including tax | = PV excluding VAT + VAT |
| Brand taxes | = ((PV HT – PA HT) ÷ PV HT) x 100 |
| Overall margin | = Unit margin x quantity sold |
Application: La Chocolaterie des Délices
States :
La Chocolaterie des Délices produces a certain variety of artisanal chocolates. They have a new range of pralines that they want to sell. The purchase price excluding tax (PA excluding tax) of these pralines is €0,50 per unit. La Chocolaterie des Délices wishes to achieve a unit margin of €0,30 per praline sold.
La Chocolaterie des Délices also needs to take into account VAT at a rate of 5,5%.
Work to do :
1. Calculate the sales price excluding tax (PV excluding VAT) of the pralines.
2. Calculate the sales price all taxes included (PV including VAT) of the pralines.
3. Calculate the VAT amount per unit.
4. Calculate the margin rate on pralines.
5. Calculate the mark rate on pralines.
Proposed correction:
1. The sales price excluding tax (PV excluding tax) is calculated by adding the purchase margin excluding tax (PA excluding tax): PA excluding tax + unit margin = €0,50 + €0,30 = €0,80.
2. The sales price all taxes included (PV including tax) is calculated by adding VAT to the sales price excluding tax (PV excluding tax): To calculate the amount of VAT, we use the formula: Amount of VAT = PV Excl. VAT x VAT rate = €0,80 x 5,5% = €0,044. Thus, the PV including VAT = PV excluding VAT + Amount of VAT = €0,80 + €0,044 = €0,844.
3. The amount of VAT per unit is therefore €0,044.
4.The margin rate is calculated by dividing the margin by the purchase excluding tax (PA excluding tax), then multiplied by 100: Margin Rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 = ((0,80 .0,50 € – 0,50 €) ÷ 100 €) x 60 = XNUMX%.
5. The brand rate is calculated in a similar way by dividing the margin by the sales price excluding tax (PV excluding tax), then multiplying it by 100: Brand Rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 = ((€0,80 – €0,50) ÷ €0,80) x 100 = 37,5%.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| PV HT | PA excluding VAT + Unit Margin |
| PV including tax | PV excluding tax + VAT amount |
| VAT | PV excluding VAT x VAT rate |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT)x 100 |
Application: The fruits of the Earth
States :
The company “Les fruits de la Terre” is a small grocery store that sells quality agricultural products. One of its star products is the Granny Smith apple. Here is some information about this variety of apples:
– Purchase price excluding tax (PA excluding VAT) per apple: €0,50
– Quantity sold: 1000 apples
– VAT rate: 20%
The company wants to obtain a unit margin of €0,20 per apple sold.
Work to do :
1. Calculate the sales price excluding tax (PV excluding VAT) for an apple.
2. Calculate the sales price all taxes included (PV including VAT) for an apple.
3. What is the value of VAT per apple sold?
4. What is the unit margin?
5. What is the company’s overall margin for this product?
Proposed correction:
1. The sales price excluding tax is the purchase price excluding tax to which the margin desired by the company is added. In our case, PV excluding tax = PA excluding tax + Unit margin, i.e. PV excluding tax = €0,50 + €0,20 = €0,70.
2. The sales price all taxes included is the sales price excluding tax to which VAT is added. VAT is calculated by multiplying the sales price excluding tax by the VAT rate. Therefore, PV including tax = PV excluding tax + (PV excluding tax x VAT rate) or PV including tax = €0,70 + (€0,70 x 20%) = €0,84.
3. The value of VAT per apple sold is the difference between the selling price including tax and the selling price excluding tax, i.e. VAT = PV incl. tax – PV excluding tax, i.e. VAT = €0,84 – €0,70 = €0,14 .
4. The unit margin is the difference between the sales price excluding taxes and the purchase price excluding taxes. In our case, Unit margin = PV excluding VAT – PA excluding VAT or Unit margin = €0,70 – €0,50 = €0,20.
5. The overall margin is the unit margin multiplied by the quantity sold, i.e. Global Margin = Unit Margin x Quantity sold, i.e. Global Margin = €0,20 x 1000 = €200.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| Sales price excluding tax (PV excluding tax) | PV excluding tax = PA excluding tax + Unit margin |
| Sales price all taxes included (PV including tax) | PV including VAT = PV excluding VAT + (PV excluding VAT x VAT rate) |
| VAT value | VAT = PV including VAT – PV excluding VAT |
| Unit margin | Unit margin = PV excluding tax – PA excluding tax |
| Overall margin | Overall Margin = Unit Margin x Quantity Sold |
Application: Dupont Couture House
States :
Maison de Couture Dupont is a company that specializes in the design and sale of haute couture clothing. They have just imported a new collection of dresses designed by a renowned designer. The purchase price excluding taxes (PA excluding VAT) of each dress is €200.
Additional costs incurred for importation, warehousing and advertising amount to €100 per dress. Maison Dupont decides to set the sale price with a margin of 40%. The applicable VAT rate is 20%.
Work to do :
1) Calculate the sales price excluding tax (PV excluding tax).
2) Calculate the sales price all taxes included (PV including tax).
3) Calculate the VAT amount.
4) Calculate the unit margin and overall margin, assuming 50 dresses were sold.
5) Calculate the margin rate and brand rate.
Proposed correction:
1) To calculate the PV excluding tax, we start by calculating the unit cost of a dress which is the amount of the PA excluding tax plus the additional cost, which gives €200 + €100 = €300. Then, we apply the margin rate of 40% to obtain the PV excluding tax: €300 ÷ (1 – 40%) = €500.
2) To calculate the PV including VAT, we apply the VAT rate of 20% to the PV excluding VAT: €500 x 20% = €100. By adding this amount to the PV excluding VAT, we obtain the PV including VAT: €500 + €100 = €600.
3) The amount of VAT is the PV including VAT minus the PV excluding VAT, which gives €600 – €500 = €100.
4) The unit margin is the PV excluding VAT minus the unit cost, which gives €500 – €300 = €200. The overall margin is the unit margin multiplied by the quantity sold, which gives €200 x 50 = €10.
5) The margin rate is ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) which gives ((€500 – €200) ÷ €200) x 100 = 150%. The brand rate is ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) which gives ((€500 – €200) ÷ €500) x 100 = 60%.
Summary of Formulas Used:
| Formulas | Description |
|---|---|
| PV excluding VAT = Unit cost ÷ (1 – Margin rate) | Calculation of the sales price excluding taxes |
| PV including VAT = PV excluding VAT x (1 + VAT rate) | Calculation of the sales price all taxes included |
| VAT = PV including VAT – PV excluding VAT | Calculation of the VAT amount |
| Unit margin = PV excluding VAT – Unit cost | Calculation of unit margin |
| Overall margin = Unit margin x Quantity sold | Calculation of the overall margin |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) | Calculation of the margin rate |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) | Calculation of the mark rate |
Application: House of Treats
States :
Monsieur Antoine, owner of “Maison des Régales”, a local bakery and pastry shop, decided to introduce a new line of pastries in his shop. Its suppliers offered it the necessary raw materials at a purchase price excluding tax (PA excluding tax) of €1,25 per unit. It plans to make a unit margin of €0,65 on each product sold. Mr. Antoine likes to offer good value for money to his customers and has therefore decided to set the sales price excluding tax (PV excluding tax) accordingly. He expects to sell around 500 units per month.
Work to do :
1. What will be the sales price excluding tax (PV) of each pastry?
2. Calculate the sales price including tax (PV including tax) assuming a VAT rate of 5,5%.
3. How much VAT will be collected for each product sold?
4. How much will the overall margin be for a month?
5. Calculate margin rate and brand rate.
Proposed correction:
1. The sales price excluding tax (PV excluding tax) will be equal to the purchase cost excluding tax per unit increased by the unit margin, i.e. €1,25 + €0,65 = €1,90.
2. To calculate the all-tax sales price (PV including tax), we add VAT to our sales price excluding taxes. The formula for calculating VAT is (PV excluding VAT x VAT rate). Here, that makes (€1,90 x 5,5%) = €0,105. So, the PV including tax will be €1,90 + €0,1045 = €2 (after rounding).
3. The VAT collected for each product sold will be €0,1045 (this amount is the result of applying the VAT rate to our sales price excluding taxes).
4. The Overall Margin is calculated by multiplying the unit margin by the quantity sold. Here, that makes (€0,65 x 500) = €325.
5. The margin rate is calculated by the formula ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100), here this gives ((€1,90 – €1,25) ÷ €1,25) x 100 = 52%. The brand rate is ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100), here this gives ((€1,90 – €1,25) ÷ €1,90) x 100 = 34,21%.
Summary of Formulas Used:
| Selling price excluding tax | PA excluding tax + Unit margin |
| Sales price including tax | PV excluding VAT + (PV excluding VAT x VAT rate) |
| VAT | PV excluding VAT x VAT rate |
| Overall Margin | Unit margin x quantity sold |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |