# What is the formula for IMU?

**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.

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.