Calculation dilema

Robm1955

I have to do an estimate, and part of it is causing me a problem. We have to send some parts for heat treatment, so we have to put that price to our customers. The problem is, the price of the heat treatment is £2.80/kilo, and we have to quote a price per part, for 5000. The weight of the part is 0.120kg. We have a formula of 2.80/1000, to give price per grm, this is then multiplied by 0.120 to give price per item, but this doesn't look right.

Syman

What result did you get.

5000 units X .12 kg = 600kg

600 X 2.80 = £1680

£1680 / 5000 = £0.336

Approx 34p/unit?

ukcarper

Should be multiplied by 120 not 0.120


But why convert to grams just multiply £2.8 x .12= 33.6p

bod1467

Syman wrote: »

What result did you get.

5000 units X .12 kg = 600kg

600 X 2.80 = £1680

£1680 / 5000 = £0.336

Approx 34p/unit?

Above is correct. THEN you add your overheads and profit margin.

John_Gray

If you are going to round it up to (say) £1 don't use exactly £1.00, but something like £1.03. It makes it look more believable. :A

Robm1955

I think it came out at around 3p. Thanks for the help. It's just the price for heat treatment I was after. All overheads, etc., are dealt with elsewhere in the spreadsheet. Thanks again.

bod1467

Robm1955 wrote: »

I think it came out at around 3p.

In which case I think either you (or they) made an error, or there was misinformation in the OP, because posts #2 and #3 gave the correct result. (33.6p ~34p)

gik

2.80/1000 gives the price per gram. you need to multiply that by 120 (not .120) and that gives you £0.336 that is 33.6p as above.

Nada666

But what is the dilemma?