This might be very trivial for you guys.
I buy 2 oranges for 5 dollars each then
I buy 3 oranges for 6 dollars each and then
I sell 3 oranges for 4 dollars each
How do I calculate the average price of an orange ? thanks.
I will elaborate :
I need to show in software the amount of the product and the avg price.
So , if lets say I bought 4 ranges for 100 usd each. and I sold 2 oranges for 110 usd each.
I now present in my systems 2 oranges - and in what price?
Option A: (4 * 110 + 2 * 100)/6 = 106.667 or Option B: (4 * 110 - 2 * 100)/2 = 120 (doesnt think so )
If I do go with option A then if I sold 2 more for 110 I would get 0 amount but average (4*100+2*110+2*110)/8 - 105 . 0 stocks for 105 doesn't make any sense.
(I beleive I want to be able to say amount*price - this is what I have, cause I want to show "How Much Do I Worth") Thanks A lot