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letamp;#39;s say that you have an item that you paid a dollar for perhaps itamp;#39;s a bottle of soda you want to make a 35 margin on that bottle of soda how do you do it you take the additive inverse of 35 all that is is 100 minus 35 percent so take your cost of goods sold which in this case is a dollar and divide that cost of goods sold so be one dollar divided by 0.65 which is the additive inverse of the margin that you want the answer is 1.54 so take that bottle of soda that you want to sell and price it at 1.54 that will help you arrive at the correct margin that you want which would be 35 percent that is how you price your products you
