The item's retail price, including VAT, with a gross profit of 40%, can be calculated based on the purchase price of NOK 4800 including VAT.
To determine the item's retail price, including VAT, with a gross profit of 40%, we need to calculate the gross profit amount and add it to the purchase price. First, we calculate the gross profit amount by multiplying the purchase price by the gross profit percentage (40%):
Gross Profit = Purchase Price * Gross Profit Percentage
Gross Profit = 4800 * 0.40
Gross Profit = NOK 1920
Next, we add the gross profit amount to the purchase price to determine the retail price:
Retail Price including VAT = Purchase Price + Gross Profit
Retail Price including VAT = 4800 + 1920
Retail Price including VAT = NOK 6720
Therefore, the item's retail price, including VAT, when the company calculates with a gross profit of 40%, will be NOK 6720. This accounts for both the original purchase price and the desired gross profit margin.
Learn more about profit here: