BEWARE OF DISCOUNTS! Proposal to improve the calculation of the Profit Margin in Aronium

Testing the Aronium program, I was able to observe that when making a discount, there is no more room for profit, the cost is usually subtracted, which is not ideal for the evolution of a business. The ideal would be that when reaching the cost price, it does not allow the price to be lowered further and a message is sent to the user informing that the limit of the cost price of the product has been reached, for which reason there is no more discount. The formula that is universally used to avoid this type of inconvenience is:

Profit plus cost = Cost / (1 - (Margin / 100))

This will correctly generate the profit so that when implementing the discount with the redetermined Aronium discount formula, the cost is not exceeded or the cost is not subtracted. Example.

Cost price: 100.00
Profit margin: 30%

Profit + cost = 100.00 / ( 1 - ( 30 / 100) )
Profit + cost = 100.00 / ( 1 - 0.3 )
Profit + cost = 100.00 / 0.7
Profit + cost = 142.85714285714285714285714285714
Profit + cost = 142.86 (Aronium will implement rounding)

Now we will apply a discount of 8%:

Aronium discount formula;

Profit + Cost - Discount

Calculating 8% of 142.86:

8% = 8 / 100 = 0.08
0.08 * 142.86 = 11.4288
Subtracting 8% from 142.86:

142 - 11.4288 = 131.4312 (The formula I suggest works correctly)

Now we will apply the same formula making a total discount of the profit;

Now we will apply a 30% discount:

Aronium Discount Formula;

Profit + Cost - Discount

Calculating 30% of 142.86:

30% = 30 / 100 = 0.08
0.30 * 142.86 = 42.858
Subtracting 30% from 142.86:

142.86 - 42.858 = 100.002

This would be the correct formula to be implemented in the system allowing only a maximum discount of 29.9999% of the profit margin.

Now I will show how the current formula of the Aronium profit system works:

Cost + Profit Margin (%) = Sales Price

Cost: 100.00
Profit Margin: 30%
Sale Price: ?

Selling Price = 100 + 30%
Selling Price = 100 * 1.3
Selling Price = 130 (So far so good)

We have 30% of 100 which is 30 units, now we will apply the discount that the Aronium system applies to the Selling Price.

***Now we will apply a 30% discount:

Aronium Discount Formula;

Profit + cost - Discount

Calculation of 30% of 130:

30% = 30 / 100 = 0.3
0.3 * 130 = 39
Subtraction of 30% from 130:

130 - 39 = 91

The selling price is below the initial price - 9 units

So my request is: either apply

"Selling price = Product cost * (1 + (Profit Margin (%) / 100))"

just subtracting the discount in reverse or apply from the beginning the formula that we all use in Excel to make accounting calculations of profit margin that I use which is

"Profit plus cost = Cost / (1 - (Margin / 100))"

so as not to have an exaggerated increase in profit and the clients are not left with their eyes like that (o.O) See the margin.

I hope you can study my analysis since I used the system and if I don't realize this, I end up losing money without realizing it.

Greetings from Venezuela, I hope my love helps you and that it is solved someday.

JOEMIND