The store buys a loaf of bread for €2. The desired margin of the bread is 20%. Calculate the price of bread without VAT when the margin is 20%

To calculate the price of the bread without VAT when the margin is 20%, we follow these steps:

1. **Cost price** of the bread = €2
2. **Desired margin** = 20% (which means the store wants a 20% profit over the cost price)

The selling price without VAT is calculated as:
\[
\text{Selling price} = \text{Cost price} + (\text{Cost price} \times \text{Margin})
\]
Where:
\[
\text{Selling price} = 2 + (2 \times 0.20)
\]
\[
\text{Selling price} = 2 + 0.40 = 2.40
\]

So, the price of the bread without VAT is **€2.40**.

Would you like more details or have any questions?

Here are 5 related questions:
1. How does the calculation change if the margin is 30%?
2. What would be the price of bread including a 10% VAT?
3. How can the desired profit margin be adjusted if the bread is sold at a lower price?
4. What if the store decides to reduce the margin to 15%? What would the price be?
5. How do different types of taxes impact the final selling price?

**Tip:** When calculating selling prices with a margin, always apply the margin to the cost price, not the selling price.

The store buys a loaf of bread for €2. The desired margin of the bread is 20%. Calculate the price of bread without VAT when the margin is 20%.

Learn how to calculate the price of a loaf of bread when the store applies a 20% profit margin. The cost price is €2, and this step-by-step guide shows how to apply the margin formula to find the selling price without VAT. Suitable for Grades 6-8.

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