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Say I'm a potato trader. This is my transaction log so far:
Quantity: 2 Price: $2
Total cost: $4
Average Cost: $2
Potato is trading today at $0.5. Now I'm interested in bringing my average cost down to $0.75. My math isn't bad to the level where I can't solve this:
((2*2)+(x*0.5))/(2+x) = 0.75
Extracting x from here is easy. But how can I represent this formula in Google Sheets/Excel? I've tried:
=(((O3 * B3) + (N3))/P3)-B3
Where O3 is my curent average cost, B3 is my current quantity, N3 is the current potato price, and P3 is my target average price.
But the number I'm getting (how many more potatoes to buy at current market price to reach target average price) is off. What am I missing?
Perfect. Thank you. – zerohedge – 2019-11-30T08:13:43.420