Originally Posted by edseb
No you have it wrong. You have to show the difference that $.23 has as a percentage of cost of manufacturing. Okay, hypothetically a motor cost $10 to manufacture. That $.23 increase now makes that same motor $10.23 to manufacture. That's an increase of about 2.3% in manufacturing. Now if you keep the same profit margin based on each price as it changes hands in percentage along the way, and it touches hands five times then a $10 is now $44.83 (based on 35% margins) and the $10.23 motor is now $45.86 which is a difference of $1.03. Now I'm not sure what the costs of manufacturing or the margins are either, and I'm sure the margins are different between cost of manuf. and wholesale, distributors, retailers, oem program, etc.
Oops, you have it right with 50%.