Thursday, October 12, 2017

HP 12C: Percent Markup and Percent Margin

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.

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