The profit calculation formula being used is price =cost + profit. So when the unit cost is 100 with a profit % of 20 then the unit price should be 120. But Nav uses a different formula for that that gives the unit price as 125. Just need help understanding how does the formula used in NAV Unitprice=(100*unitcost)/(100-profit%) work.
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Answers
20% of the new unit price (125) is 25.