HP 12C:
Percent Markup and Percent Margin
I would like to
thank Gamo for this question.
Calculating Percent Markup and Percent
Margin
Two common
calculations in business is calculating the percent margin and markup. The formulas are:
Percent Markup
= (Selling Price – Cost) / Cost
Percent Margin
= (Selling Price – Cost) / Selling Prices
There is no
dedicated keys on the HP 12C for this, but we can use either the percent change
key ([ Δ% ]) key or the TVM keys.
Using the Percent Change Key
Percent Markup:
cost [ ENTER ] price [ Δ% ]
Percent Margin:
price [ ENTER ] cost [ Δ% ] [ CHS ] (note that the arguments are in reverse
order)
Example:
Cost: 25.00, Price: 36.00
Percent Markup:
25.00 [ENTER] 36.00 [ Δ% ], result: 44.00
Percent Margin:
36.00 [ENTER] 25.00 [ Δ% ] [CHS], result: 30.56
Using the TVM Keys
Clear the
registers before you begin. For this
exercise, PMT = 0.
Percent Markup with
TMV solver (HP 12C):
Let N = 1 and PMT = 0
[ i ] = percent markup
[ PV ] = cost
(enter/displayed as a negative)
[ FV ] = price
For our example:
N = 1, PV = -25, FV =
36. Solving for i gets 44.
Percent Margin with
TMV solver (HP 12C):
Let N = 1 and PMT = 0
[ i ] = percent margin
(enter/displayed as a negative)
[ PV ] = price
(enter/displayed as a negative)
[ FV ] = cost
For our
example:
N = 1, PV =
-36, FV = 25. Solving for i, then
pressing [CHS] obtains 30.56.
What is good
about the above method is that you can solve for any of the variables.
More Methods: Solutions Handbook
Detailed
algorithms for business calculations can also be found in the HP 12C Advanced
Solutions Handbook (see source below).
For the Platinum edition of the Solutions Handbook, refer to page
92.
Source:
Tony Hutchins,
Luiz Vieria, and Gene Wright. HP 12C
Platinum Solutions Handbook. Hewlett
Packard Development Company, L.P. Rev.
03.04 2004
This book can
be downloaded from this site (and others) at no cost: https://support.hp.com/us-en/product/hp-12c-platinum-financial-calculator/384706/model/315565/manuals
Eddie
This blog is
property of Edward Shore, 2017.
