can someone do this sum for me. my brain doesn't work today

[missacs1984]

for some reason i can't seem to get my head around this and i'm starting to think i'm being a bit thick!

If i buy something for lets say �2.00 and sell it for �4.50 I am making a gross of �2.50, which is 125% profit margin. firstly is that correct(!)

so if i sell all of my products at this 125% margin, how much would I need to sell in order to make a �25,000 gross profit. and if you could tell me the calculation i'd be even more grateful!

for some reason i can't seem find a calculation to do this. ive been at work all day and i fear my brain has stopped working in this heat

I assume that if i sold things at 100% I would need to sell �50,000 worth of things to get the �25,000 (the other �25,000 being for the cost of the items to buy). So I know i wouldn't have to sell �50,000 because i'm selling them at a greater profit margin, but i don't know the exact figure on the calculation to do it!

am i being stupid here?

I almost spelled stupid wrong, i had to go back and change it!

[missacs1984]

i won't be selling everything for a 2.50 profit though, that was just an example. i will however definately be making at 125% profit on each item that sells, so perhaps you could word your answer a bit differenlt using the 125% bit?

[sara3]

oh dear!!!!!

[missacs1984]

thanks for your help, but its suddenly just dawned on me.
if i divide what profit i need by 1.25 then add it to itself i get the answer!

[kinell]

if you buy at �2.00 and sell at �4.50..

you have a 'mark up' of 125%..

you have a 'profit (on sale)' of 55.55%.