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Thread: adjustable coefficient needed to influence trending to a desired result

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    adjustable coefficient needed to influence trending to a desired result

    Hello, This is a wonderful forum, and this is my first posting. Here is my problem:
    Background: I need help designing a formula which takes the data of: average price per unit versus units sold, over time. I know this happens over a unrestricted period of time in order to sell a defined number of units, but the restrictive variable is that once the set number of units are sold, the average price per unit MUST be a predetermined price/uom which was set before this "campaign" was launched.
    What formula can take trending average price per unit data over time and restrict it as units are sold to arrive at a set/desired overall price per unit?

    Here is a scenario which I hope helps:
    A company launches a sale campaign for orange juice whereby they intend to earn a gross of $100.00, byselling 500 fl. oz of oj, for an average of $0.2 per fl.oz or less.
    But, since sales per unit are variable, some orange juice markets sell each fl. oz. for a higher price than the targeted $0.2/fl.oz, for example Alaska, $0.6/2 fl.oz, and some are lower like $0.10/3fl.oz in Florida, with various other price points possible between these, but never 0.

    Therefore, in each sale, we approach the 500 ounces sold. We need a formula that returns the highest price possible over time as ounces are sold in order to ensure the price is at $0.2/fl. oz or less once 500 fl. ozs are sold at the end of the budgeted $100 or 500 fl. oz.

    Thank you so much for your help! Please let me know if you have any questions.
    Ben
    Last edited by luke1776; 03-03-2014 at 08:18 PM. Reason: adding possible reference

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