Help Calculating Price Based On Profit

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Dec 20, 2009
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I'm using a spread sheet to help determine what I should charge customers. I want to make at least $300 profit on every job. If my profit is not at least $300 then I must up my price until profit reaches $300. Currently I'm manually adding a percentage (Factor) to the original price until I reach $300 profit. In the image below:

34yd0lz.jpg



A is the original price
B is the factor by which I multiply the original price to increase it
C is the new figure which is reached after multiplying (1+B2)*A2
D is the costs related to that job (I enter these manually on a separate sheet within the workbook)
E if the profit (C-D)


Note: I use a factor in B because when I increase the price, then I have to increase several parts of the job by the same percentage so I multiply each part by this factor to increase the price of each by the same percentage.


Now what I would like to do is if E2<300 then have excel automatically change the price for me so that E2=300.


I put the following formula into the B2: =IF(E2<300,1+(300-E2)/A2,0), but this produced a circular reference and doesn't calculate properly. Can someone please help me figure out how to do this?


 

Excel Facts

What do {} around a formula in the formula bar mean?
{Formula} means the formula was entered using Ctrl+Shift+Enter signifying an old-style array formula.
Calculate the desired price in F2 as =MAX(300,E2)+D2.

Alternatively, forget about column B. Calculate C2 as =MAX(A2-D2,300)+D2, which is the same as =MAX(A2,D2+300).

I'm using a spread sheet to help determine what I should charge customers. I want to make at least $300 profit on every job. If my profit is not at least $300 then I must up my price until profit reaches $300. Currently I'm manually adding a percentage (Factor) to the original price until I reach $300 profit. In the image below:

34yd0lz.jpg



A is the original price
B is the factor by which I multiply the original price to increase it
C is the new figure which is reached after multiplying (1+B2)*A2
D is the costs related to that job (I enter these manually on a separate sheet within the workbook)
E if the profit (C-D)


Note: I use a factor in B because when I increase the price, then I have to increase several parts of the job by the same percentage so I multiply each part by this factor to increase the price of each by the same percentage.


Now what I would like to do is if E2<300 then have excel automatically change the price for me so that E2=300.


I put the following formula into the B2: =IF(E2<300,1+(300-E2)/A2,0), but this produced a circular reference and doesn't calculate properly. Can someone please help me figure out how to do this?


 
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