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Reset price to include cost increases

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Standing bear

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To factor in cost recovery I have the old margin and the new margin and both are a percent already so can I just take the new margin minus the old margin to use that result for the lost margin to include in the price or instead do I take the new margin minus old margin divided by new margin. The second way gives a higher number than the first way but since it’s a percent already isn’t it just the new margin minus the old margin??? So like if the new margin is 43.21% and old was 46.37% that’s a -3.16% to put back into the price. But if I do =(new margin 43.21% - old margin 46.37%)/new margin 43.21% that equals -7.31%. But which is the right way to do it? My guess is the first way of new minus old margin but I’m not sure.
The price to base this on is $177.14
Using new margin minus old margin is -3.16%
result would be to do =round(177.14*(1+abs(-3.16%)),2) which is $182.74

Or using this of new margin-old margin divided by new margin comes to 190.10
=round(177.14*(1+abs(-7.31%)),2) which is $190.10

which is the right way?
 
Thank you. I’m not sure if that will return the result needed. The price now is 177.14. The margin percentage with today’s cost is 43.21% but the old margin was 46.37% because the cost increased today. So I’m needing to find the difference between the margin percentage based on today compared to what it was previously and take that difference and add it to the price to develop the new price. I’m not sure if I’m approaching that method correctly though. Should I just take the new margin percentage minus the old margin percent since both are a percent already? Or instead should I be taking the new margin percentage minus old margin percent divided by new margin percent? Would you be able to advise the best approach.
 
Standing bear said:
I’m not sure if that will return the result needed
Click to expand...
If you don't know what the result should be, or don't even give it a try, what's the point in trying to help you?
Your example returns 177.14/1.4321 =123.69 which is the price without the cost
With the new cost it will be 123.69*1.4637 = 181.05

This being said, this is NOT a question related to XL but to basic mathematics
 
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