11 business calculation exercises with answers

Welcome to this article on exercises on business calculations and more precisely on 11 corrected commercial calculation exercises. You will find here no less than 11 detailed corrected management exercises on commercial calculations for Operational Management.

By the end of this article, you will know how to perform these 11 business calculation exercises without any worries.

Application: The Good Snack

States :

The L'Bon Goûter supermarket offers various ready-to-eat foods. You are the financial manager of this supermarket. One of the products you are responsible for is a fruit salad sold at the start of the school year, which costs €1,50 excluding VAT to purchase and is sold at a price of €3 excluding VAT. The VAT applied to this type of product is 5,5%.

Work to do :

1. Calculate the unit margin of this product.
2. Set the margin rate for this product.
3. Determine the brand rate of the fruit salad.
4. Calculate the product's sales price including tax.
5. Evaluate the overall margin if you sold 200 fruit salads.

Proposed correction:

1. The unit margin is calculated by deducting the purchase cost from the sale price. In this case, the unit margin is therefore €3 excluding VAT – €1,50 excluding VAT = €1,50.

2. To calculate the margin rate on purchase cost (Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100), we would deduct the purchase costs from the sale price, then divide the result by the purchase cost and multiply by 100. Thus, ((€3 HT – €1,50 HT) ÷ €1,50 HT) x 100 = 100%.

3. The markup rate is calculated in a similar way, but the selling price is the denominator (Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100). Therefore, ((€3 HT – €1,50 HT) ÷ €3 HT) x 100 = 50%.

4. The sales price including VAT is calculated by adding the VAT rate to the sales price excluding VAT. Therefore, the price will be €3 + (€3 * 5,5%) = €3,165 including VAT.

5. The overall margin is calculated by multiplying the unit margin by the number of products sold. So, if 200 fruit salads were sold, the overall margin would be €1,50 x 200 = €300.

Summary of Formulas Used:

Here is the summary of the formulas used in this work:

Formulas used	Relevance of the formula
Unit margin = PV excluding tax – PA excluding tax	To calculate the profit made per unit of product.
Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100	To determine the percentage of gross profit made on the purchase cost.
Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100	To determine the percentage of gross profit made on the sales price excluding tax.
VAT included = VAT excluded * (1 + VAT rate)	To calculate the product's sales price including tax, i.e. the final price at which the product is sold to the consumer, including all taxes.
Overall margin = Unit margin x quantity sold	To calculate the overall margin, that is, the total revenue generated from the product.

Application: Fashion Style

States :

Fashion Style clothing store recently purchased a new batch of satin shirts. For each shirt, the purchase price excluding tax (PP HT) is €20. The shirts are sold at a sales price excluding tax (SRP HT) of €35. The current VAT rate is 20%.

Work to do :

1) What is the unit margin amount for each shirt?
2) What is the margin rate on these shirts?
3) What is the markup rate on these shirts?
4) What is the sales price including all taxes (PV TTC) for each shirt?
5) If the store managed to sell 100 shirts, what is the overall margin achieved?

Proposed correction:

1) The unit margin can be calculated using the formula: Unit margin = PV HT – PA HT. Therefore, Unit margin = €35 – €20 = €15.

2) The margin rate can be calculated with the formula: Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100. Therefore, Margin rate = ((35 € – 20 €) ÷ 20 €) x 100 = 75%.

3) The markup rate can be calculated with the formula: Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100. Therefore, Markup rate = ((35 € – 20 €) ÷ 35 €) x 100 = 42,86%.

4) The sales price including all taxes (PV TTC) can be calculated using the formula: PV TTC = PV HT x (1 + VAT rate/100). Therefore, PV TTC = €35 x (1 + 20/100) = €42.

5) The overall margin can be calculated using the formula: Overall margin = Unit margin x quantity sold. Therefore, Overall margin = €15 x 100 = €1500.

Summary of Formulas Used:

Packages	Description
Unit margin = PV excluding tax – PA excluding tax	Formula for calculating unit margin
Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100	Formula for calculating margin rate
Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100	Formula to calculate the markup rate
PV incl. VAT = PV excl. VAT x (1 + VAT rate/100)	Formula for calculating the sales price including tax
Overall margin = Unit margin x quantity sold	Formula to calculate overall margin

Application: Gourmet Delights

States :

The company Les Délices Gourmandes is a company specializing in the sale of food products. For one of its flagship products, a chocolate cake, it has the following data:
– The purchase price excluding tax (PA HT) of the chocolate cake is €14.
– The sales price excluding tax (PV HT) is €28.
– The quantity sold is 550 units.
– The VAT rate applicable to food products is 5,5%.

Work to do :

1. Calculate the overall margin achieved by the company Les Délices Gourmandes for the chocolate cake.
2. Determine the margin rate of the company Les Délices Gourmandes for the chocolate cake.
3. Calculate the markup rate of the company Les Délices Gourmandes for the chocolate cake.
4. Find the sales price including tax of each chocolate cake.
5. How much revenue did the company Les Délices Gourmandes generate including tax for the sale of the chocolate cake?

Proposed correction:

1. The overall margin is obtained by multiplying the unit margin by the quantity sold. The unit margin is the difference between the PV excluding VAT and the PA excluding VAT. Therefore, Overall margin = (PV excluding VAT – PA excluding VAT) x quantity sold, or (€28 – €14) x 550 = €7.

2. The margin rate is the ratio between the margin made per unit and the purchase price excluding tax, multiplied by 100 to express it as a percentage. Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100), or ((€28 – €14)/€14) x 100 = 100%.

3. The markup rate is the ratio between the margin made per unit and the selling price excluding tax, multiplied by 100 to express it as a percentage. Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100), or ((€28 – €14)/€28) x 100 = 50%.

4. To find the sales price including tax, add VAT to the sales price excluding tax. PV including tax = PV excluding tax + (PV excluding tax x VAT rate), i.e. €28 + (€28 x 5,5%) = €29,54.

5. To find the revenue generated by the sale of chocolate cakes, multiply the sales price including tax by the quantity sold. Revenue including tax = quantity sold x PV including tax, or 550 x €29,54 = €16.

Summary of Formulas Used:

Concept	Formulas
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)
Income including tax	Quantity sold x PV incl. VAT

Application: Sarah's Delights

States :

Sarah is the manager of a company specializing in the sale of homemade cakes. She buys her flour at €5,00 per kilo excluding VAT and resells it at €8,00 per unit excluding VAT. The VAT rate applied is 20%. Sarah sells an average of 500 kilos of flour per month.

Work to do :

1. Calculate Sarah's margin rate on her flour sales.
2. Calculate Sarah's markup on her flour sales.
3. Calculate the selling price including tax of the flour.
4. Determine Sarah's overall margin in one month on her flour sales.
5. Calculate the total amount of Sarah's sales in one month, taking into account VAT.

Proposed correction:

1. The margin rate is calculated as follows: Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100). Here, this gives Margin rate = ((€8 – €5) ÷ €5) x 100) which gives a margin rate of 60,00%.

2. The markup rate is determined as follows: Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100). Here this gives Markup rate = ((€8 – €5) ÷ €8) x 100) which gives a markup rate of 37,50%.

3. The sales price including tax is calculated by adding VAT to the sales price excluding tax. The formula is as follows: PV including tax = PV excluding tax + (PV excluding tax x VAT rate). Here this gives PV including tax = €8 + (€8 x 0,20) or a PV including tax of €9,60.

4. The overall margin is the unit margin multiplied by the quantity sold. Here this gives Overall Margin = (€8 – €5) x 500 or an overall margin of €1500.

5. The total amount of sales is calculated by multiplying the VAT-inclusive sales price by the quantity sold. Here this gives Total sales = €9,60 x 500, i.e. total sales of €4800.

Summary of Formulas Used:

Formulas	Explanation
Margin rate	((PV HT – PA HT) ÷ PA HT) x 100
Brand taxes	((PV HT – PA HT) ÷ PV HT) x 100
Sales price including tax	PV excluding VAT + (PV excluding VAT x VAT rate)
Overall margin	Unit margin x quantity sold
Total sales	PV incl. VAT x quantity sold

Application: Fashion City

States :

Fashion City is a fashion company specializing in the sale of clothing and accessories. The company purchases a batch of 500 denim jeans. The acquisition cost (Purchase Price excluding Tax: PA excluding tax) of each pair of jeans is €35. Fashion City sells these jeans at a Sales Price excluding Tax (SRP excluding tax) of €70. The VAT rate applied in this transaction is 20%.

Work to do :

1. Calculate the overall margin for all jeans.
2. Calculate Fashion City's margin rate on these jeans.
3. Calculate Fashion City's markup rate on these jeans.
4. Determine the sales price including tax (SRP including tax) of each pair of jeans.
5. Estimate the result following this operation, taking into account VAT.

Proposed correction:

1. The overall margin is calculated using the following formula: Overall margin = Unit margin x quantity sold. Here, the unit margin is the PV HT – PA HT, therefore €70 – €35 = €35. The overall margin is therefore €35 x 500 = €17500.

2. The margin rate is given by the formula: Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100). Here, this gives ((70 € – 35 €) ÷ 35 €) x 100 = 100%.

3. The markup rate is calculated using the formula: Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100). Here, this gives ((70 € – 35 €) ÷ 70 €) x 100 = 50%.

4. The sales price including VAT is calculated by adding VAT to the sales price excluding VAT: Sales price including VAT = Sales price excluding VAT x (1 + VAT rate / 100). Here, this gives €70 x (1 + 20 / 100) = €70 x 1.20 = €84.

5. To estimate the result of this operation, the company must take into account the VAT that it must pay to the State. The share of VAT is: VAT = PV incl. VAT – PV excl. VAT, or €84 – €70 = €14 per pair of jeans. On the 500 pairs of jeans, this represents a sum of €14 x 500 = €7000. The final result obtained is therefore: Overall margin – VAT = €17500 – €7000 = €10500.

Summary of Formulas Used:

Concept	Mathematical formula
Overall margin	Overall margin = Unit margin x quantity sold
Margin rate	Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100
Brand taxes	Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100
Sales price including tax	PV including VAT = PV excluding VAT x (1 + VAT rate / 100)
VAT	VAT = PV including VAT – PV excluding VAT
Final result	Final Result = Overall Margin – VAT

Application: Heavenly Patisserie

States :

Heavenly Patisserie, an artisanal bakery, sells several types of pastries. One of the flagship products is their cherry pie. They buy the cherries from a local producer for a tax-free purchase price (TPP) of €5 per kilo. After preparation, a pie contains 1 kilo of cherries. Their VAT rate is 5,5%.

The bakery wants to determine its margin rate and markup rate as well as the sales price including tax of the cherry pie. They currently sell the cherry pie for a sales price excluding tax (SRP HT) of €12.

Work to do :

1. Calculate the unit margin of the cherry pie.
2. Calculate the cherry pie margin rate.
3. Calculate the markup rate of the cherry pie.
4. Calculate the selling price including tax of the cherry pie.
5. If the bakery wants to increase its margin rate to 80%, what should the new selling price excluding tax be?

Proposed correction:

1. Unit margin = PV HT – PA HT = €12 – €5 = €7. The unit margin for cherry pie is €7.

2. Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100 = ((12 € – 5 €) ÷ 5 €) x 100 = 140%. The margin rate for cherry pie is 140%.

3. Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100 = ((12 € – 5 €) ÷ 12 €) x 100 = 58,33%. The markup rate for cherry pie is 58,33%.

4. VAT inclusive price = VAT exclusive price x (1 + (VAT rate ÷ 100)) = €12 x (1 + (5,5% ÷ 100)) = €12,66. The selling price including VAT of the cherry tart is €12,66.

5. New selling price excluding tax for a margin rate of 80% = PA excluding tax x (1 + (Target margin rate ÷ 100)) = €5 x (1 + (80% ÷ 100)) = €9. For a margin rate of 80%, the new selling price excluding tax of the cherry pie should be €9.

Summary of Formulas Used:

Formulas	Description
Unit margin = PV excluding tax – PA excluding tax	Allows you to calculate the unit margin.
Margin rate = ((PV HT – PA HT) / PA HT) x 100	Allows you to find the margin rate.
Mark rate = ((PV HT – PA HT) / PV HT) x 100	Allows you to calculate the markup rate.
PV including tax = PV excluding tax x (1 + (VAT rate / 100))	Allows you to find the sales price including tax.

Application: Luxury Boutique

States :

La Boutique de Luxe is a company that sells high-end designer clothing. The company sources a wide range of clothing, accessories, and shoes from suppliers in Europe and Asia. In recent times, the company has noticed a decline in its overall margins despite maintaining its selling prices constant. In order to address this issue, the company needs to analyze its margin rates, markup rates, and sales prices inclusive of tax.

1. The first item to be analyzed is a designer dress for which the company paid €100 excluding VAT to the supplier. The dress is sold in stores for €300 including VAT. The VAT rate is 20%.

2. The second item is a pair of designer shoes for which the company pays the supplier €150 excluding VAT. The pair of shoes is sold in store for €360 including VAT. The VAT rate is 20%.

3. The third item is a designer belt purchased from the supplier for €30 excluding VAT and sold in store for €90 including VAT. The VAT rate is 20%.

Work to do :

1. Calculate the margin rate and markup rate for the first item.
2. Calculate the margin rate and markup rate for the second item.
3. Calculate the margin rate and markup rate for the third item.
4. Based on the previous calculations, determine which of the items is most profitable for the company.
5. Provide recommendations on how the company could improve its margin.

Proposed correction:

1. For the first item (designer dress), the selling price excluding VAT is 300 ÷ (1 + 20%) = 250 €. The margin rate is therefore ((250 – 100) ÷ 100) x 100 = 150%. The markup rate is ((250 – 100) ÷ 250) x 100 = 60%.

2. For the second item (designer shoes), the selling price excluding VAT is 360 ÷ (1 + 20%) = 300 €. The margin rate is therefore ((300 – 150) ÷ 150) x 100 = 100%. The markup rate is ((300 – 150) ÷ 300) x 100 = 50%.

3. For the third item (designer belt), the selling price excluding VAT is 90 ÷ (1 + 20%) = 75 €. The margin rate is therefore ((75 – 30) ÷ 30) x 100 = 150%. The markup rate is ((75 – 30) ÷ 75) x 100 = 60%.

4. Based on the above calculations, the most profitable item is designer dress and designer belt with margin rate and markup rate of 150% and 60% respectively.

5. The company could improve its margin by negotiating better purchasing prices from its suppliers, increasing its selling prices or looking for higher margin items to complement its product line.

Summary of Formulas Used:

Packages	Explanation
PV HT = PV TTC ÷ (1 + VAT rate)	Formula for calculating the Sales Price excluding Tax
Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100	Formula for calculating margin rate
Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100	Formula to calculate the markup rate

Application: Brioche Dorée Company

States :

The company Brioche Dorée sells fresh products such as pastries, sandwiches and cakes. A cake has a purchase price excluding tax (PA HT) of €3,00 and is sold at a sales price excluding tax (PV HT) of €4,50. The company sold 1000 cakes.

Work to do :

1) Calculate the overall margin.
2) Calculate the margin rate.
3) Calculate the markup rate.
4) Calculate the sales price including tax with a VAT rate of 5,5%.
5) Calculate the total profit assuming a VAT rate of 5,5%.

Proposed correction:

1) The unit margin is €4,50 – €3,00 = €1,50. The overall margin is therefore €1,50 x 1000 = €1500,00.

2) The margin rate is ((€4,50 – €3,00) ÷ €3,00) x 100 = 50%.

3) The markup rate is ((€4,50 – €3,00) ÷ €4,50) x 100 = 33,33%.

4) The sales price including VAT is €4,50 x (1 + 5,5 ÷ 100) = €4,74.

5) The total profit is (Total margin – VAT on sales). The VAT on sales is €4,74 x 5,5% x 1000 = €260,70. So the total profit is €1500,00 – €260,70 = €1239,30.

Summary of the formulas used:

Formulas used	Explanations
VAT rate = 20% | 5,5%	The VAT rate is used to determine the amount of value added tax that the company must pay to the State.
Overall margin = Unit margin x quantity sold	The unit margin is the difference between the PV excluding tax and the PA excluding tax. The overall margin is therefore the total profit made on sales of this product.
Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100	The margin rate is the ratio between the unit margin and the net PA.
Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100	The markup rate is the ratio between the unit margin and the PV excluding tax.

Application: Gourmandise Shop

States :

The Gourmandise boutique specializes in the sale of high-end food products.

The owner of the shop, Mr. Gourmand, is evaluating the financial performance of some of the products he sells in his store. To do this, he has the following information for one of his products, chocolate cakes:

– Purchase price excluding tax (PA HT): €5
– Sales price excluding tax (PV HT): €10
– Quantity sold: 100 units
– VAT rate: 20%

He wants to calculate the margin rate, the markup rate and the sales price including all taxes (PV TTC).

Work to do :

1. Calculate the margin rate for chocolate cakes.
2. Calculate the markup rate for chocolate cakes.
3. What is the overall margin on the sale of chocolate cakes?
4. Calculate the sales price including all taxes (PV TTC) of the chocolate cakes.
5. If Mr. Gourmand decides to increase the net sales price of chocolate cakes to €12, how will the margin rate and the brand rate be affected?

Proposed correction:

1. The margin rate is calculated using the formula: Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100
That is: ((€10 – €5) ÷ €5) x 100 = 100%

2. The markup rate is calculated using the formula: Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100
That is: ((€10 – €5) ÷ €10) x 100 = 50%

3. The overall margin is calculated by: Overall margin = Unit margin x quantity sold
Unit margin = PV HT – PA HT = 10€ – 5€ = 5€
Global Margin = 5€ x 100 = 500€

4. The sales price including tax is calculated using the formula: PV including tax = PV excluding tax x (1 + VAT rate)
That is: €10 x (1 + 20/100) = €12

5. If Mr. Gourmand increases the PV excluding tax to €12, the new margin and brand rates would be:
– Margin rate: ((€12 – €5) ÷ €5) x 100 = 140%
– Markup rate: ((€12 – €5) ÷ €12) x 100 = 58.3%

Summary of Formulas Used:

Concept	Formulas
Margin rate	((PV HT – PA HT) ÷ PA HT) x 100
Brand taxes	((PV HT – PA HT) ÷ PV HT) x 100
Overall margin	Unit margin x quantity sold
Sales price including tax	PV excluding VAT x (1 + VAT rate)

Application: SmartMark Supermarket

States :

SmartMark is a popular supermarket that supplies food and non-food products to its customers. Their buyer recently acquired a consignment of 1200 bottles of wine at €5 excluding VAT each. They plan to sell each bottle at a margin of 60%. The applicable VAT rate is 20%.

Work to do :

1. Calculate the sales price excluding tax (SVP HT) for each bottle of wine.
2. Calculate the sales price including all taxes (PV TTC) for each bottle of wine.
3. Calculate the overall margin for all bottles of wine.
4. Calculate the markup rate for each bottle of wine.
5. From the PV including tax, find the purchase price including tax if the margin rate is 60%.

Proposed correction:

1. The formula for the PV HT is: PA HT x (1 + Margin rate). Thus, the PV HT = €5 x (1 + 60/100) = €5 x 1,60 = €8.

2. The formula for the PV including tax is: PV excluding tax x (1 + VAT rate). Therefore, the PV including tax = €8 x (1 + 20/100) = €8 x 1,20 = €9,60.

3. The overall margin is calculated by the formula: Unit margin x quantity sold. Therefore, the overall margin = (€8 – €5) x 1200 = €3,600.

4. The markup rate is calculated by the formula: ((PV HT – PA HT) ÷ PV HT) x 100. Therefore, the markup rate = ((8 € – 5 €) ÷ 8 €) x 100 = 37.5%.

5. Let's use the formula PV TTC = PA TTC (1 + Margin rate), so PA TTC = PV TTC/(1 + Margin rate) = €9,60 / (1 + 60/100) = €6.

Summary of Formulas Used:

Formulas	Explanation
PV excluding tax = PA excluding tax x (1 + Margin rate)	To calculate the Sales Price excluding Tax
PV including VAT = PV excluding VAT x (1 + VAT rate)	To calculate the Sales Price Including All Taxes
Overall margin = Unit margin x quantity sold	To calculate the Global Margin
Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100	To calculate the markup rate
PA TTC = PV TTC / (1 + Margin rate)	To calculate the Purchase Price Including All Taxes

Application: The Gourmet Basket

States :

The supermarket "Le Panier Gourmet" allows you to work on their product catalog in order to offer them an improvement in their operational management. The director Mr. Richard gives you access to the list of products sold in January 2022. Here are some products in particular:

1. “Fusilli” pasta: Purchase Price excluding tax (PP excluding tax): €1,00, Sale Price excluding tax (SVP excluding tax): €1,50, Quantity Sold: 6800 units.
2. Red Wine “Bordeaux”: HT PA: €8,00, HT PV: €14, Quantity Sold: 1200 bottles.
3. “Camembert” cheese: HT PA: €2,00, HT PV: €3,00, Quantity Sold: 5400 units.

The VAT rate applicable to these products is 20%.

Work to do :

1. Calculate the margin rate and markup rate of each product.
2. Calculate the amount of the overall margin in January 2022.
3. Calculate the sales price including tax of the products.
4. The supermarket wants to increase the margin rate of “Fusilli” pasta to 60%. What should be the new Selling Price excluding VAT to achieve this objective?
5. Mr. Richard wants to know what pricing strategy would be most profitable for the company. Can you help him assess the situation and make a recommendation?

Proposed correction:

1. The margin rate is calculated by the formula ((PV HT – PA HT) ÷ PA HT) x 100. The markup rate is calculated with this formula ((PV HT – PA HT) ÷ PV HT) x 100. So for “Fusilli” pasta the margin rate is 50% and the markup rate is 33,33%. For “Bordeaux” red wine, the margin rate is 75% and the markup rate is 42,86%. For “Camembert” cheese, the margin rate is 50% and the markup rate is 33,33%.

2. The overall margin is calculated by the formula Unit margin x Quantity sold. For pasta, the total margin is €3400. For red wine, it is €7200. For cheese, it is €5400. The total overall margin in January is €16000.

3. The Sales Price including VAT is calculated using the formula PV HT x (1 + VAT rate/100). For “Fusilli” pasta, the PV including VAT is €1,80. For “Bordeaux” Red Wine, the PV including VAT is €16,80. For “Camembert” cheese, the PV including VAT is €3,60.

4. To obtain a margin rate of 60% on “Fusilli” pasta, the Selling Price excluding VAT should be €1,60. This is calculated using the formula PA excluding VAT x (1 + Margin Rate / 100).

5. After analyzing the current situation, our recommendation for Mr. Richard would be to increase the selling price of products with high demand and low margin such as “Fusilli” pasta. By increasing their price, the margin would also increase, which would improve the overall profitability of the supermarket without affecting sales due to the high demand for these products.

Summary of Formulas Used:

Formulas	Description
((PV HT – PA HT) ÷ PA HT) x 100	Margin rate
((PV HT – PA HT) ÷ PV HT) x 100	Brand taxes
Unit margin x Quantity sold	Overall margin
PV HT x (1+ VAT rate/100)	Sales price including tax
PA HT x (1 + Margin Rate / 100)	New Selling Price excluding VAT to achieve a targeted margin rate