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Simple gross profit question

Bicky · 2012-07-03 01:29:01

This is from an old thread. Am I right in thinking the maths is off here? Granted the vat rate(21.5%) and price of keg have changed but... 136.89/80 = €1.71 cost per pint €3.9/1.215 = €3.21 sale price per pint, ex vat €3.21-€1.71 = €1.50 gross profit per pint All gravy so far, but where does the poster get a GP of 51%? By…

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03-07-2012 2:29am

#1

Bicky

Registered Users Posts: 878 ✭✭✭

Join Date: February 2003

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Just on the pint Guinness ( pre-budget) Diageo were charging €136.89 ex VAT per keg. Kegs are 50 Litres ( 11 gallons ) . Revenue historically accept that you will seel approx 84 of the potential 88 pints in a keg. Many accountants would argue a maximum of 80 pints to be sold per keg, allowing for waste etc. That gives a cost of €1.71 ex VAT per pint. At selling price €3.90 gives €3.21 ex VAT. €3.21-1.71 = profit of €1.50 per pint. Thats a gross profit of 51%. The pint of stout would be the lowest profit item normally in a pub so a pub should have a GP% of at least 55%+ ( and that's being very conservative, usually would be more )

This is from an old thread. Am I right in thinking the maths is off here? Granted the vat rate(21.5%) and price of keg have changed but...

136.89/80 = €1.71 cost per pint
€3.9/1.215 = €3.21 sale price per pint, ex vat
€3.21-€1.71 = €1.50 gross profit per pint

All gravy so far, but where does the poster get a GP of 51%?

By my calculation the GP % is...
€1.50/€3.21*100 = 46.72%

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