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- Joined Jun 11, 2017

We studied about cost multiplier method where the following is done:

For example your total cost of Food preparation is $9.50

your desired profit from this dish is 15%

So,

To find out the selling price for this dish the formula will be:

Total cost $9.5

------------------------- = ------------- = $11.18

(100-desired profit)% (100-15)%

So the Selling price will be $11.18

Here, what I dont understand is that why is that desired profit is subtracted from 100?

Thank you