The wholesale price includes own costs, the wholesale price of the manufacturer, as well as the profits of trade organizations. The manufacturer's wholesale price is formed by combining normal profit and full cost, that is, such a profit that can provide the organization with the possibility of expanded production at its own expense.
Instructions
Step 1
The wholesale price and the cost of profit of trade organizations are included in the retail price. Do not forget that depreciation, profits and wages of employees are part of the created value during the production of goods and in the process of continuing production, and it is realized in the form of profit and in the form of such taxes: excise duty, VAT, state duties, other payments and fees provided by law. That is why the retail and wholesale prices include, in addition to profits and costs, such elements as taxes and fees.
Step 2
Value added tax consists of newly created value that is deducted to the budget at all stages of production and sales of products. The VAT rate is set as a percentage of the tax base; it is determined based on the value of goods, calculated at regulated or free prices.
Step 3
To determine the wholesale price of a product, if its cost per unit is known, as well as the acceptable profitability for the manufacturer, the value of the excise tax rate and the amount of VAT. When calculating profit, multiply costs by profitability. The manufacturer's price is equal to the sum of cost and profit. The wholesale price of goods without VAT is equal to the sum of the excise tax rate and the manufacturer's price. The wholesale price with VAT is calculated as the sum of VAT and the wholesale price excluding VAT. The result is the wholesale price of the product.
Step 4
The excise tax is calculated at the flat rate of the European unit of account from one unit of goods sold, imported or transferred to the territory of the country, or at the rate as a percentage of the turnover from the sale of goods.
Step 5
Each individual price in the price system and each price group is interconnected with all other prices and it is worth making the slightest change in the level of one price, which will entail a change in the whole series. This is due to the fact that production costs are formed by a single process, all elements of the market mechanism of all business entities are interconnected.
Step 6
Purchase of goods from an importer or manufacturer by a business entity that carries out wholesale sales and is not a VAT payer, but at the same time the seller is a VAT payer, the wholesale premium in case of further sale of such a product is calculated taking into account VAT from the selling price of the importer or manufacturer.
