Circular reference error

I'm trying to construct a function that allows me to specify a target $ net profit, then have Excel return a list price needed to achieve the target net profit after calculating a cost that equals 8% of the list price, then added into the list price.

Sounds confusing when writing it out, so let me try illustrating by a screenshot (attached).

Hi

a couple of things I can think of.

1) Tools, Options, Calculation, select the iteration option. Only problem with this is that it may give a different result every time you calculate.

2) Change the formula in B7 to be =B1-B6. Clear out B1. Use solver to find a result, by making B7 your desired value of $50, and changing the value in B1.


rylo

It's easy to solve in closed form. See attached; I had to type in all your data.

Works like a charm. Thanks for the advice!