What is the formula for calculating the sales price of a job, considering overhead and profit?

The formula for calculating the sales price of a job while factoring in overhead and profit is represented accurately by the formula Cost ÷ (100% - Markup %). This approach takes into account the total cost of the job, which includes both direct and indirect costs, and adjusts it to account for the desired markup percentage.

By dividing the cost by (100% - Markup %), you are effectively determining what the cost should be before the markup is applied, ensuring that your sale price covers all costs and includes the intended profit margin. This method allows for a clear understanding of how much needs to be charged in relation to costs and anticipated profit, providing a comprehensive view of job pricing.

While other potential formulas may add components such as overhead and profit directly to the cost, they do not adequately account for the relationship between cost and markup in determining the final sales price as effectively as the selected formula does. Thus, using the division method creates a precise end price that is reflective of the cost structure while ensuring profitability.