#### gsullivan75

##### New Member

- Joined
- Sep 10, 2009

- Messages
- 1

*To try and explain things:*

I know the dollar profit I make is $40

I know that this represents a 40% margin on revenue which has had

**X value of discounts applied**to it (thus the 40% is referred to as

**'discounted margin'**)

I know that I can calculate the discounted revenue that drives this 40% by using the formula $40 / 40% = $100

I know that there was 10%pp (percentage points) of discounts applied

Thus I know that the '

**undiscounted margin**' is 50%

So now what I now need is a formula that will give me the dollar value of the discounts from either the known 50% Undiscounted GP% or the -10%pp of discounts that will be applied.

What I do know from just playing with numbers is that the Undiscounted Rev needs to be $120 and the discounts thus $20 but I am going slowing mad trying to work this simple formula!!!

All help gratefully received!!

Regards

Gerry