Why a 25% margin on $100 costs gives a $133.34 price

Steps

1. Start with direct unit cost. Add the chosen overhead percentage to that cost.
2. Divide the loaded unit cost by one minus the target margin. A $100 cost with no overhead and a 25% margin gives 100 / 0.75.
3. The unit selling price is rounded upward to the next cent, giving $133.34. A 25% markup instead would give $125; that is a different calculation.
4. Multiply the rounded selling unit by quantity. Check discounts, tax and any minimum-profit adjustment separately.
5. If the result is unexpected, compare the cost, overhead and margin inputs before looking at the total including tax.

Check that it worked

For quantity 1, cost $100, overhead 0%, margin 25%, no discount or tax, the customer price is $133.34 and profit is $33.34.

Still stuck?

If this exact example produces different results, run the workspace checks and report a product calculation issue.

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