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====== How do the calculations on the retail tab work ======

===== Markup Calculations =====
A markup calculation is a calculation that does its math from "the bottom up". This means that it refers to the dollar value increase as a percentage of cost. The 2 codes that use the markup calculation style are W and L. The cost used is different for each one. W uses base cost, and L uses actual costs otherwize known as the landed cost.


==== Calculation ====
<code>
COST + (COST x (Percentage))
</code>


==== Example 1 ====
  * Where COST = 100
  * Where Markup Percentage = 100

<code>
COST + (COST x (Markup Percentage)) =
100 + (100 x 100%) =
100 + (100 x 1) = 
100 + (100) =
200
</code>




==== Example 2 ====
  * Where COST = 100
  * Where Markup Percentage = 150

<code>
COST + (COST x (Markup Percentage)) =
100 + (100 x 150%) =
100 + (100 x 1.5) = 
100 + (150) =
250
</code>





==== Explenation ====
The 100% markup scenario is a great example because most retailers know that a 100% markup is double the price. You can think of the calculation of markup as a way to compare the cost to the increase in terms of a percentage.

A common mistake in the calculation can happen if you are used to thinking about things in terms of percentage of cost. if I have a cost of $100 and a price of $300 it is intuative to say that the price is cost x 300%. The problem with that is that the markup is only 200%. Test it using the formula above. Please look at our price code X for this type of calculation.





===== Margin Calculations =====
A margin calculation is a calculation that does its math from “the top down”. This means that it refers to the dollar value increase as a percentage of retail. The 2 codes that use the margin calculation style are H and M. The cost used is different for each one. H uses base cost, and M uses actual costs otherwize known as the landed cost. 






==== Calculation ====
<code>
Gross margin = (Revenue - Cost of goods sold) / Revenue
</code>







===== Example 1 =====
  * Where COST = 125
  * Where Margin Percentage = 50

<code>
Gross margin = (Revenue - Cost of goods sold) / Revenue

250-125/250 = .50
</code>



===== Example 2 =====
  * Where COST = 100
  * Where Margin Percentage = 60

<code>
Gross margin = (Revenue - Cost of goods sold) / Revenue

250-100 / 250 = .60

</code>