Given that I have the retail price & desired retail markup % of an item, how do I then calculate the wholesale price?
Say the following is true for a cup:
Retail: $100
Desired Markup: 100%
Wholesale: $???
Instinctively I know that the Wholesale price should be $50, because I know that marking up $50 by 100% would give me $100.
But how do I calculate that in a formula, such that I could enter that formula into a 'Wholesale' field in Excel and have it reference the Retail price and the Desired Markup and then get the correct wholesale price?
Applying a markup of $n$% to a base amount is the same as multiplying the base amount by $$\frac{100 + n}{100}$$ To remove the markup, just multiply the marked up amount by $$\frac{100}{100+n}$$