I've actually worked this out now, my question was quite far from the solution.
The increase from 20% to 35% is a 75% increase. The breakdown of the 75% is made up as follows.
For sale 2, it made a 25% profit which is 5% more than the original 20% or a 25% increase. ((.25-.2)/2). The weighting...
That's great, thank you. The point I'm trying to get to is one step further though I'm afraid.
From the first sale, we had a 20% margin. After the fourth, we had a 35% profit. The delta here, 15%, how do I work out the make up of that?
If I was to do weighting a of 20/100*25 , 50/100 *60 and...
Sorry, Mark, thanks for your reply.
Margin delta meant the change in the margin. Moving from having a 20% profit margin before the day to a 35% profit margin at the end of the day, the change is 15% or 1500 basis points (bps).
Hope this makes it clearer.
I'm stumped at how to approach this problem and was hoping someone could enlighten me.
If I had sold $100 of a product and made a 20% profit up until a specific day.
The next day, made three sales;
A) $20 making a $5 profit
B) $50 making a $30 profit
C) $30 making a $15 profit.
So...