What percentage can be charged on a product? What should be the markup on your goods or services - how to calculate the markup correctly. way to calculate trade margin

Trading activity involves selling goods at a markup to make a profit. Trade margin is the difference between the initial cost of a product and the price set at the time of sale. The trade margin includes transportation costs, payment for rent of a retail outlet and wages of company employees. This means that selling goods at cost brings losses to the outlet. Below we propose to talk about how to correctly mark up a product and consider all aspects of this issue.

A markup is the amount by which the original cost of a product being sold is increased.

What determines the level of trade margins?

Quite often we see a situation where the same product in different stores has different prices. The reason for the difference in prices for the same product is the markup level, which is set by the owner of the outlet. When developing a pricing policy, an entrepreneur must take into account a number of criteria. The level of markup on a product depends on the number of competitors with a similar offer, the quality of the product, the solvency of the target audience and brand awareness. It should also be mentioned that the state maintains control over the cost of certain product groups. The cost of such goods should not exceed the established standard. Considering all of the above, we can conclude that it is almost impossible to determine the optimal markup level.

Today, Russian legislation does not regulate the cost of most commercial products. This aspect allows owners of retail outlets to independently regulate prices for the products offered, guided by a number of criteria. As an example, let’s take a situation in which the seller has a unique product in a single copy. The cost of this product was no more than a thousand rubles. In this case, the seller has the opportunity to sell this product for either two thousand or a million rubles. As a rule, the markup level is closely related to market restrictions. Firstly, there is not always someone willing to purchase goods at an inflated price. Secondly, there may be a competing company that will offer the same product at a better price.

What markup should be in retail trade? Only those people who have extensive practical experience in this field can answer this question. Many entrepreneurs say that developing a pricing policy is a whole science.. In addition to the above criteria, competitors' offers should be taken into account. In the event that the set price significantly exceeds the prices of competitors, the entrepreneur may lose his customers, which will lead to a decrease in sales volumes. You also need to pay attention that an underestimated markup on the cost of goods reduces the amount of profit and can cause unprofitable trading activities.

What parameters affect profit in trading activities? As a rule, the level of income is closely related to the volume of products sold and the level of markup. The presence of a high markup can cause a decrease in sales volumes. A low markup has a negative impact on the entrepreneur’s income. In order to understand the full depth of influence of these factors, you should familiarize yourself with a number of criteria that should be taken into account when developing a pricing policy:

Level of competition in the chosen field.
Location of the supplier and retail outlet (transportation costs).
The number of similar products presented at the point of sale (for example, the number of different types of ice cream from different manufacturers).
The level of traffic to the retail outlet.
Brand prevalence.
Target audience of consumers.

The goal of any entrepreneur who wants to succeed and constantly develop his business is to make a profit

The minimum markup on a product for tax purposes is calculated taking into account such a criterion as the “break-even point”. Let's look at how to calculate the level of this allowance. Let’s say an entrepreneur purchased products worth 100 thousand rubles. The estimated sales period for the goods is one month. To calculate the amount of the premium, you should take into account the cost of renting the retail space (5,000), wages for salespeople (25,000) and additional expenses (10,000). In order to obtain information about the minimum markup level, it is necessary to add up all expenses, and then multiply the result of the addition by one hundred. After completing simple steps ((5,000+ 25,000+10,000)*100), we received an amount equal to 4 million rubles.

In order to find out the amount of the minimum markup on the cost of the product, it is necessary to divide this result by the primary cost of the product (100 thousand rubles). As a result, we get a value equal to forty percent. This means that a markup less than this value can cause a business to become unprofitable, while a larger markup will bring income. But it should be borne in mind that with an increase in turnover, a batch of goods can be sold in two weeks. This means that the amount of the premium should be halved.

Based on this example, we can conclude that an increase of thirty percent can bring both an income of 20,000 rubles and a loss of 10,000 thousand. In order to make a profit, the entrepreneur will have to increase the markup to sixty percent, which will speed up the time for selling products.

It should also be noted that lowering the cost of a product does not always contribute to an increase in sales volumes. The level of markup on popular seasonal products can be more than five hundred percent. After the end of the season, sellers can organize a “holiday” sale with a discount of up to seventy percent on goods. In this case, the sale of goods will bring profit due to increased demand in the “hot” months.

What is the markup on goods in retail trade? In order to determine the level of acceptable markup for a certain group of goods, it is necessary to analyze in detail a number of parameters. First of all, you will need to carefully study the characteristics of the products offered. Criteria such as the quality and properties of the product, the level of demand by consumers and the degree of competitiveness of the supplier deserve special attention. Further, the final cost includes the expenses of the entrepreneur himself. This takes into account the costs of transporting the goods, storing them and subsequent delivery of the products to the buyer.

The last component is the tax amount. Including a percentage of tax payments in the final cost of marketable products allows the entrepreneur to avoid production costs that can cause the business to become unprofitable.

Without the correct markup on a product, making a good profit will be very problematic

Quite often you can hear the question of whether the markup on all goods is equal? To answer this question, we need to look at several different examples. Let's imagine a retail outlet that has a limited range of goods. In this case, the entrepreneur gets the opportunity to control the cost of each item. Thanks to limited supply, the seller is able to respond promptly to changes in consumer tastes. In the case of a large number of goods, it is quite difficult to control the cost of each item. If consumer needs change, price tags on each shelf will have to be promptly replaced.

Today, there are many different computer applications that can provide analysis of consumer demand. Despite the possibility of using specialized equipment and computer applications, most entrepreneurs prefer to divide their assortment into several product groups. At the same time, the level of markup for meat products may differ from the markup for baked goods and confectionery products . The amount of surcharge for a specific product group depends on the level of consumer demand. In order to determine the acceptable value of this value, the entrepreneur needs to carefully study the pricing policies of competitors.

The level of markup for a certain product group may depend on the purchase price of the goods.

Cheaper products are subject to a high markup compared to expensive products. This method allows you to increase consumer demand for expensive products, which leads to an increase in gross profit.

A correctly calculated markup gives an entrepreneur the opportunity not only to cover the costs of organizing a business, but also to receive the expected income

Current legislation

What markup can be made on a product according to the law? As mentioned above, the current legislation does not have regulations governing the pricing policy of many product groups. Thanks to this aspect, each business entity has the opportunity to independently regulate set prices, guided by the level of consumer demand and other parameters. However, there are a number of socially significant goods, the cost of which is controlled by government agencies. The regulatory authorities set the maximum amount of the commodity markup. These groups include:

medical devices and pharmaceuticals;
baby food;
goods supplied to the northern regions;
catering products supplied to educational institutions.

The maximum markup on goods by law cannot exceed more than thirty percent. This premium level is set for essential products. This group includes dairy and bakery products, meat products and groceries. This category also includes other product groups, on the basis of which the cost of the consumer basket is formed. It should be noted that the premium for medical products is controlled by the Government of the Russian Federation. Control of the cost of other commercial products is regulated by regional authorities.

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Trading companies often record received goods in account 41 “Goods” at their selling price. But since there is also a markup in it, account 42 “Trade markup” is allocated for accounting. Let's understand the formation of this indicator when posting goods and learn how to calculate the markup on products sold.

The percentage of markup on the purchase price of goods is regulated by the accounting policy of the enterprise: it is established by order and can be either the same for the total volume of products sold, or different for different product groups.

When goods are received, the amount of the markup is reflected in the debit of account 41 and the credit of account 42, and when they are sold and to identify the financial result, the markup must be established by calculation. It is this indicator that arouses the interest of a businessman. Therefore, we will figure out how to calculate the markup on goods that were sold in the reporting period.

The value of this indicator covers operating costs and provides profit from sales. The entrepreneur, knowing the amount of the markup, and, accordingly, the financial result, analyzes the results and plans further steps in the business, and, if necessary, provides a calculation at the request of the Federal Tax Service.

This indicator is defined as the difference between revenue and the purchase price of goods sold.

Calculations are made according to:

trade turnover in general,
range of trade turnover,
average percentage.

The method of calculating the size of the markup for the turnover of the enterprise as a whole is acceptable if the company has established the same markup percentage for the entire volume of purchased goods. The calculation also includes the turnover indicator (credit turnover count. 90 - “Revenue”).

Example No. 1.

The enterprise's turnover for the quarter is 12,350,000 rubles. The established markup percentage was 25%. Find the markup amount:

TN = T * RTN /100,

where T is t/revolution,

RTN - % of the calculated markup.

RTH = TH%/ (100 + TH) * 100,

where TN% is the % of the premium accepted in the company.

RTH = 25/(100+25)*100 = 20%

TN = 12,350,000 * 20/100 = 2,470,000 rub.

The method of calculating the assortment of turnover is applicable in companies where different percentages of markups are established for individual groups of goods. A necessary condition for keeping records in such companies is to record turnover by product groups, united by one markup. The calculation formula is:

TN = (T1* RTN1 + T2* RTN2 +... + Tn*RTHn) / 100,

where T1, T2,..., Tn - t/turnover for certain product groups,

RTN1, RTN2,.. RTNn - calculated markups corresponding to these groups.

РТНn = ТН%n/ (100 + ТН%n) * 100,

where ТН%1, ТН%2,...ТН%n are surcharges in % for each product group.

Counting example No. 2

Sales turnover of goods 1st gr. with a markup of 25% amounted to 5,255,000 rubles, 2nd gr. with a markup of 35% amounted to RUB 6,980,000.

Total 12,235,000 rub.

We determine RTN for each product group:

RTH1 = 25/(100+25)*100 = 20%
RTH2 = 35/(100+35)*100= 25%

Therefore, TN = (5,255,000 * 20 + 6,980,000 * 25) /100 = 2,796,000 rub.

The average percentage calculation option involves determining the average percentage applied and is considered the most common and convenient.

TN = T * P%av/100,

where P%av is the average % markup, determined as follows:

Psr = (TNn + TNp - TNv) / (T + Ok) * 100, where

ТНн - opening balance of account. 42,

ТНп - turnover according to the currency. 42,

TNv - turnover according to the account. 42,

Ok - final account balance. 41.

Calculation example No. 3.

Revenue for the 1st quarter - RUB 15,600,000.

Turnover according to account 42 - 3,620,400 rub.

Turnover according to account number 42 - 120,000 rub.

We calculate P%av = (2,650,900 + 3,620,400 - 120,000) / (15,600,000 + 1,987,500) * 100 = 34.98%

We find the amount of markup TN = 15,600,600 * 34.98 / 100 = 5,456,880 rubles.

Hello to all my readers! Today I’m answering a question from several readers, but I’m doing it not in the section, but in the general feed, because I want everyone to know about it once and for all and not ask such a question! I looked at the queries in search engines and saw that there were queries, but no answers! More precisely, there are answers about what kind of markup to make, but there are incomprehensible numbers taken from the ceiling and it is not clear where the author took them from. I’m used to explaining everything, so I’ll answer the question with a full but short article. So, let's begin!

What markup should I make?

In my opinion, this is the simplest thing that can be. If you purchase goods and then resell them, or if you provide services, you must understand that you need to get a profit and it is unlikely that you will buy something for 10 rubles and sell for 11. This is a small markup and, in principle, it exists be with a high receipt (wholesale). Okay, let's go in order, how can you determine the markup?

1. Rely on competitors' prices.

As easy as pie. We looked at the price of competitors, figured out whether you could compete or whether the markup would be enough for you to recoup your physical costs. For example, competitors sell some product for 100 rubles. You can buy it from your suppliers for 50 rubles, the markup is 100%, you can work. But if your competitors sell for 100 rubles, and your suppliers sell for 90 rubles, then either your suppliers sell at a high price and you need to look for others, or this is not the main product of your competitors and even a minimal markup is enough for them. In general, rely on the price of competitors and dance from it. In any case, you cannot increase 100% and make the price many times higher than that of your competitors; they simply won’t buy from you.

2. If the market price is very high

If you see that your competitors’ product or service costs 100 rubles, and your suppliers or performers cost 20 rubles (500% markup), this does not mean that you should make a 100% markup and set the price at 40 rubles. If you do this, then naturally people will buy from you more actively, but this dumping (a strong reduction in price compared to the market price) will lead to the rapid saturation of consumers with those goods or services that your business will not survive long. Secondly, you will simply break the market and your competitors will also have to reduce their prices. You can't do that! You need to compete on quality, not price (read and understand). But if you really want to differ in price, then drop it just a little bit and customers will see it.

3. How to mark up a service

Markups for the same service can be calculated differently and, as a rule, prices on the market have a wide range. For example, let's take website development. There are studios that make websites for 10,000 rubles, and there are those who make them for 1,000,000 rubles. It all depends on positioning, quality and the client’s profile. Therefore, it is quite difficult to set a price for services.

You can simply mark up as much as you really value your work or as much as will be sufficient for the favorable functioning of your business. The main thing is to subtract all the costs associated with the provision of a particular service and proceed from this price and add to it.

But there are also services, the prices of which are mostly fixed. To determine the price of such a service, also focus on market prices.

In general, you can add a few additional touches to any service and then you can slightly increase the price. For example, when ordering website development, setting up contextual advertising as a gift.

Conclusion

In conclusion, I would like to say once again that the question of what markup to make should not arise in your head. Moreover, when choosing a product or service for your future business, you must immediately see the markup (your benefit) in order to understand whether this product or service is worth selling or not. If I'm wrong about something, please add and correct in the comments, but I've been living with these rules for a long time and they haven't let me down!

Thank you for your attention!

Best regards, Schmidt Nikolay!

Organizations engaged in retail trade are allowed to keep records of purchased goods on account 41 “Goods” at their choice, as set forth in the accounting policy: at the cost of their acquisition or at the selling price. This is stated in paragraph 13 of PBU 5/01 “Accounting for inventories”, approved by Order of the Ministry of Finance of the Russian Federation dated 06/09/01 No. 44n. If an organization decides to account for goods at sales prices, the concept of “trade margin” arises, which is the difference between the sale price and the purchase price of the goods and is reflected in accounting in account 42 “Trade margin”. The size of the trade margin is established by order of the manager. This may be a single trade markup (the same for all goods), or for each group (nomenclature) of goods its own trade markup is applied.
When goods are accepted for accounting at sales prices, account 42 “Trade margin” is credited in correspondence with account 41 “Goods” for the amount of trade margin. Accordingly, the cost of goods sold, written off from the credit of account 41 “Goods” to the debit of account 90 “Sales”, is equal to the amount of revenue received for these goods. To identify the financial result from sales, the debit turnover of account 90 “Sales” must be adjusted to the amount of the trade markup (margin) related to goods sold.
This is done by reflecting the amount of the trade margin on goods sold on the credit of account 42 “Trade margin” in correspondence with the debit of account 90 “Sales” using the “reversal” method. In this case, the amount of the trade margin related to goods sold is equal to the difference between sales proceeds (sale value of goods sold) and the purchase price of goods sold. This difference is also called gross income (subclause 12.1.1 clause 12 of the Methodological Recommendations for accounting and registration of operations for the receipt, storage and release of goods in trade organizations approved by the Letter of Roskomtorg dated July 10, 1996 No. 1-794/32-5 (hereinafter - Guidelines)). And the most important thing when accounting for goods at sales prices is to correctly calculate the amount of gross income (trade margin related to goods sold).
Options for calculating gross income (trade margin related to goods sold) are proposed in the Methodological Recommendations. In accordance with clause 12.1.3 of the Methodological Recommendations, the markup can be determined: by the total turnover, by the assortment of turnover, by the average percentage, by the assortment of the remaining goods.
The Instructions for using the chart of accounts for accounting the financial and economic activities of organizations, approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n, also indicate the method for calculating the amount of the trade margin. This method is similar to the average percentage calculation method specified in the Methodological Recommendations.
Let's consider the methods specified in the Methodological Recommendations in more detail.

By total trade turnover

Trade turnover refers to the amount of revenue for goods sold (subclause 2.2.3, clause 2 of the Methodological Recommendations), i.e. turnover on the credit of account 90 of the “Revenue” subaccount.
If the same percentage of trade markup is applied to all goods, then the method of calculating gross income based on total turnover is used (subclause 12.1.4, clause 12 of the Methodological Recommendations). But if the size of the trade markup changed during the reporting period, the volume of trade turnover should be determined separately by the periods of application of different sizes of the trade markup.
When calculating based on trade turnover, gross income from the sale of goods (IG) is calculated using the formula:

VD = T x RN: 100,

where T is the total turnover,
RN - estimated trade markup.

In its turn:

RN = TN: (100 + TN) x 100,
where TN is the trade markup, %.

Therefore, gross income will be determined by the formula:

HP = T x TN: (100 + TN)

Example 1

Sales revenue of the trading company Start LLC for October 2008 amounted to 240,000 rubles, including VAT 36,610.17 rubles. According to the order of the head of the organization, a trade margin of 20% is charged on all goods.
Gross income (trade margin related to goods sold) of Start LLC for October 2008 will be 40,000 rubles. (240,000 x 20: (100 + 20)).

By assortment of turnover

The method of calculating gross income by assortment of trade turnover is used if different sizes of trade markup are applied to different groups of goods (subclause 12.1.5, clause 12 of the Methodological Recommendations). It involves mandatory accounting of trade turnover by groups of goods, each of which includes goods with the same markup.
Gross income for the assortment of turnover is determined by the formula:

VD = (T1 x RN1 + T2 x RN2 +... + Tn x RNn): 100,

where T1, T2,..., Tn are trade turnover by product groups;
RN1, RN2,..., RNn - estimated trade markups for product groups.

In this case, РНn = ТНn: (100 + ТНn) x 100,

where ТН1, ТН2,..., ТНn - trade markup by product groups, %.

Example 2

We use the following initial data:

Product group Trade turnover, rub. Trade markup, %
Products of group 1 25 000 25
Products group 2 6500 30
Total 31,500

First, we determine the estimated trade markups for each group of goods.
For goods of group 1, the calculated trade markup will be РН1 = 25 x 100: (100 + 25) = 20.
For goods of group 2, the calculated trade markup will be РН2 = 30 x 100: (100 + 30) = 23.077.
Gross income (trade margin related to goods sold) will be:
VD = (25,000 x 20 + 6500 x 23.077) : 100 = 6500 rub.
>

By average percentage

In accordance with sub. 12.1.6. Clause 12 of the Methodological Recommendations, gross income based on average interest is calculated using the formula:

VD = T x P: 100,

where P is the average percentage of gross income.

In its turn:

P = (TNn + TNp - TNv): (T + OK) x 100,

where TNN is the trade markup on the balance of goods at the beginning of the reporting period (account balance 42 “Trade margin” at the beginning of the reporting period);
ТНп - trade markup on goods received during the reporting period (credit turnover of account 42 “Trade markup” for the reporting period);
ТНв - trade markup on disposed goods (debit turnover of account 42 “Trade markup” for the reporting period). In this case, disposal of goods means the so-called documentary expense (return of goods to suppliers, write-off of damaged goods, etc.) (subclause 12.1.6, clause 12 of the Methodological Recommendations);
OK - balance of goods at the end of the reporting period (balance of account 41 “Goods” at the end of the reporting period).
Let's combine the two above formulas:

VD = T x (TNn + TNp - TNv): (T + OK)

Example 3

Impulse LLC calculates gross income from retail trade using an average percentage. The company's revenue for October 2008 amounted to 300,000 rubles. The following accounting data is also used to calculate gross income:
Account balance 42 as of 10/01/08 (TNn) – 20,000 rubles;
Credit turnover of account 42 for October 2008 (TNp) – 30,000 rubles;
Debit turnover of account 42 for October 2008 (TNv) – 0 rub.;
The balance of account 41 as of 10/31/08 is 200,000 rubles.
Gross income (trade margin related to goods sold) will be:
VD = 300,000 x (20,000 + 30,000) : (300,000 + 200,000) = 30,000 rub.

By assortment of remaining goods

VD = (TNn + TNp - TNv) - TNk,

where TNK is the trade markup on the balance of goods at the end of the reporting period.

Example 4

Iskra LLC determines gross income from retail trade based on the range of remaining goods.
Trade allowance:
- for the balance of goods as of 10/01/08 (TN) – 30,000 rubles;
- for goods received in October 2008 (TNp) – 60,000 rubles;
- for goods disposed of due to return to suppliers, damage, etc. for October 2008 (TNv) - 0 rub.;
- for the balance of goods as of October 31, 2008 – 20,000 rubles.
Gross income (trade margin related to goods sold) for October 2008 will be:
VD = (30,000 + 60,000 - 0) - 20,000 = 70,000 rub.

In order to obtain data on the amount of the trade markup attributable to the balance of goods at the end of the reporting period, it is necessary to keep records of the accrued and realized trade markup for each item of goods or for groups of goods with the same methods for calculating the trade markup. Because of this, the method of calculating gross income based on the range of remaining goods is the most labor-intensive.

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Most entrepreneurs today need to correctly and quickly calculate the markup on a product.

First of all, the markup is calculated in order to correctly evaluate the product before selling, that is, to conduct a kind of pricing of the product.

Another reason for calculating the markup— a businessman needs to know at what prices his competitors purchase goods.

In this article you will learn exactly how the price of a product is formed at points of sale, as well as how to calculate the markup on a product.

What is a markup?

Markup on goods – this is some kind of premium to the cost of a product or service. Also, the markup of a product can be called the income from sales and the costs of selling this product.

The markup of a product depends on the product itself, namely its quality, popularity, and consumer properties.

The markup is made to cover the costs of sold and manufactured products, as well as their storage and transportation.

For entrepreneurs, the main thing is to make a profit from the product.

When setting the full price for a product, the competitiveness of the product in the market is taken into account. Find out the competitiveness of the brand that produces this product.

It is important to know, What is the competitor's sales strategy?.

The following selling strategies are used:

Sell goods at a low price, but in large volumes;
Sell goods at a high price, but in small volumes.

The markup on a product shows how much profit the costs of purchasing the product and its sale brought.

When the markup on a product is correctly completed, sales will be carried out at a fast pace, A income will fully cover the costs of purchasing and storing goods. Hence, Profit depends on markup.

How to calculate the markup?

Let's figure out how we will mark up the goods that we sold during the reporting period.

This the indicator must cover all costs and also allow you to generate income, for example, revenue from sales of goods.

A businessman who already knows the amount of markup on his goods can calmly take the next steps in business development.

The markup indicator is defined as the difference between the proceeds and the purchase price of the product.

Calculations are made using the following characteristics:

Trade turnover;
Product range in trade turnover;
Markup percentage.

Formulas for calculating markup on goods

TN = T*RTR/100

T– trade turnover

RTN– estimated markup (%)

TN– markup on goods

RTH = TH%/ (100 + TH) * 100

This method for calculating the markup is perfect for an enterprise in which the percentage for the price of the entire volume of goods is set to the same.

TN = (T1* RTN1 + T2* RTN2 +… + Tn*RTNn) / 100

T1, T2,…, Tn– trade turnover for different product groups

RTN1, RTN2,.. RTNn— coefficient of markups that correspond to these groups

РТНn = ТН%n/ (100 + ТН%n) * 100

TN%1, TN%2,…TN%n– surcharges for each group of goods

Example of calculating trade margins

The company's turnover for the quarter is RUB 20,481,000. The established markup percentage was 22%.

Find the markup amount:

Where T – t/revolution,

RTN– % of the calculated markup.

RTH = TH%/ (100 + TH) * 100,

Where TN%— % of the premium accepted in the company.

RTH = 22/(100+22)*100 = 18%

TN = 20,481,000 * 18/100 = 3,686,580 rub.

What determines the size of the markup?

There are markups in both wholesale and retail trade.

Main destination - cover all costs and make a profit.

Trade margins depend on the following factors:

Costs associated with the purchase, storage and sale of goods;
From the amount of VAT;
Arrived from implementation.

Entrepreneurs, at their discretion, enter the following markup factors:

Establish a single markup percentage for all goods or services that the company sells.
Set any monetary unit for more convenient selling(if the product is imported from other countries).
Set the cost required for the enterprise goods for sale.
Use other methods product markups.

The most optimal option for setting a markup on a product is to set a price that is considered average in the market.

In most cases, in order not to be left without profit and to protect itself from losses, the company adds a percentage of tax to the markup of the goods.

Discounts and bonuses are also used for regular customers.

How to determine the actual percentage of trade margin for sales analysis?

To determine the actual percentage for sales analysis, do the following:

Determine what value will be present when characterizing the units of the population. To do this you need to use the following formula:

Xap=Oz/Oc. Oz – Total volume of markup value, Oc is the volume of the population.

You should select indicators of the amount of change in a characteristic over the analysis period.

For such an analysis We add up the amount of debt that was overdue at the end of the year.
We calculate the average debt ratio. To do this, substitute the values into the formula and multiply it by 100%

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