I know the most common way for retail companies to calculate a price based on markup is:
Cost/(1 - Margin), but how should this work for a company that wants a profit margin greater than 100%?
For example, if you have an item that costs $200 and you want a 300% markup on the sales price,
so your equation should be:
$200/(1-3), but that gives you a negative sales price of $100.
Could you explain how to calculate the final price of an item using the markup formula on the final sale price when the markup is greater than 100%?
Thank you in advance for your help!