What is the formula for IMU?

Asked By: Ike Thuns | Last Updated: 1st March, 2020
Category: business and finance debt factoring and invoice discounting
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To calculate IMU, add these percentage figures, then divide the total by the markdown percent plus 100: operating, desired profit margin and markdown. Using this formula, your initial markup should be 41 percent when overhead is 25 percent, profit margin is 7 percent and planned markdowns are 15 percent of sales.

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Moreover, what is IMU percentage?

Meaning. An initial markup unit is the amount of money, expressed as a percentage of initial cost, that a retailer adds to the price of goods. For example, a retailer that buys computers for $500 from the manufacturer and sells them to customers for $1,000 has an initial markup unit of 100 percent.

One may also ask, how is OTB calculated? To figure out your OTB at cost, multiply the OTB value by the initial markup. For example, using the one-month calculations from above, if your markup is 75%, your open-to-buy at cost for those wallets you want to stock in your store is $10,350 x . 75 = $7,762.50.

Beside this, how do you calculate IMU in Excel?

This formula subtracts the cost from the selling price, divides that total by the cost and multiplies the result by 100. The formula tells Excel to compute percentage markup and place it in the Percent Markup column.

How is Gmroi calculated?

It's also known as the gross percentage of profit, or the margin. Divide the sales by the average cost of inventory and multiply that sum by the gross margin percentage to get GMROI. The result is a ratio indicating the inventory investment 's return on gross margin.

39 Related Question Answers Found

What is IMU stand for?

Inertial Measurement Unit

How do you calculate IMU in retail math?

Think of your IMU as a percent of the price you ask customers to pay: the retail price. To calculate IMU, add these percentage figures, then divide the total by the markdown percent plus 100: operating, desired profit margin and markdown.

What does gross margin tell you?

Gross margin equates to net sales minus the cost of goods sold. The gross profit margin shows the amount of profit made before deducting selling, general, and administrative costs. Gross margin can also be shown as gross profit as a percent of net sales.

What is maintained markup?

Maintained Markup is the markup on the merchandise that is sold to the consumer, or the difference between the cost of goods and the actual retail price of the goods when sold. It is based on actual sales, not planned sales, and actual happenings such as markdowns in the retail store.

What is retail math?


At its simplest, retail math is basic arithmetic, such as counting money and making change. Computing the total amount of a sales transaction also involves calculating percentages to determine discounts, sales tax and shipping charges. And the higher up in retailing you go, the more math skills you need.

What is average unit retail?

Average Unit Retail (AUR) is the average dollar amount spent for a particular type of item, calculated by dividing the total sales in dollars by the number of items sold. This is a metric that retailers can use to compare sales across different departments or categories.

What is IMU medical?

IMU means Intermediate Care Unit
This acronym/slang usually belongs to Medical category.

What is a good profit margin?

You may be asking yourself, “what is a good profit margin?” A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.

What is the formula to calculate profit percentage?

How to calculate profit margin
  1. Determine the net income (subtract the total expenses from the revenue).
  2. Divide the net income by the revenue.
  3. Multiply the result by 100 to arrive at a percentage.

What is the formula to calculate selling price?


It is important to note that the selling price is the total amount of money that will be received so this has to represent 100% for the purpose of this calculation. In basic terms, food costs + gross profit = selling price.

What are the formulas in Excel?

Excel formulas and functions
  • =1+2 // returns 3.
  • =6/3 // returns 2.
  • =A1+A2+A3 // returns 9.
  • =B1+C1+D1 // formula in E1.
  • =A1 // relative reference =$A$1 // absolute reference.
  • =D1*$A$1 // formula in E1 =D2*$A$1 // formula in E2 =D3*$A$1 // formula in E3.
  • =SUM(1,2,3) // returns 6 =SUM(A1:A3) // returns A1+A2+A3.
  • =AVERAGE(1,2,3) // returns 2.

What is the Excel formula for markup?

Compute the markup percent by writing a formula that divides the difference between price and cost by the cost. This can be visualized as (Price-Cost)/Cost. For example, if cost is $10 and price is $12, then the markup amount is $2 ($12-$10) and the markup percent is 20 percent ($2/$10).

How do we calculate revenue?

The sales revenue number indicates the number of sales or income generated by a business and is one of the major factors of how much cash a business has available. Sales revenue is generated by multiplying the number of a product sold by the sales amount using the formula: Sales Revenue = Units Sold x Sales Price.

How do you calculate a 40% markup?

For example if your cost is $10.00 and you wish to markup that price by 40%, 100% + 40% = 140%. Multiply the $10.00 cost by 140% and get the retail price of $14.00.

Does margin mean profit?


The profit margin is a ratio of a company's profit (sales minus all expenses) divided by its revenue. The profit margin ratio compares profit to sales and tells you how well the company is handling its finances overall. It's always expressed as a percentage.

What OTB means?

Off-track betting (or OTB; in British English, off-course betting) is sanctioned gambling on horse racing outside a race track.

What is OTB planning?

An open-to-buy plan is a purchasing budget for future inventory orders that a retailer creates for a specific period. An OTB plan helps a retailer stock the right amount of the right products at the right time by showing the difference between how much inventory is needed and how much is available.