CREATE OR REPLACE FUNCTION pricequote.guidance_logic(
    _target_price NUMERIC(20,5),
    _last_price   NUMERIC(20,5),
    _list_price   NUMERIC(20,5),
    _last_date    DATE
)
RETURNS TABLE (
    guidance_price NUMERIC(20,5),
    guidance_reason TEXT
) AS $$
DECLARE
    _price NUMERIC(20,5);
    _reason TEXT := '';
    _floored NUMERIC(20,5);
    _capped  NUMERIC(20,5);
    _is_last_recent BOOLEAN := _last_date IS NOT NULL AND _last_date > CURRENT_DATE - INTERVAL '2 years';
BEGIN
    IF _target_price IS NOT NULL AND _last_price IS NOT NULL AND _is_last_recent THEN
        _floored := GREATEST(_target_price, _last_price * 0.95);
        _capped  := LEAST(_floored, _last_price);
        _price   := LEAST(COALESCE(_list_price, 1e9), _capped);

        IF _price = _last_price THEN
            _reason := 'Cap at last price';
        ELSE
            _reason := 'Using target price';
            IF _target_price < _last_price * 0.95 THEN
                _reason := _reason || ', floored to 5% below last price';
            END IF;
            IF _target_price > _last_price THEN
                _reason := _reason || ', capped to not exceed last price';
            END IF;
            IF _list_price IS NOT NULL AND _price = _list_price AND _target_price > _list_price THEN
                _reason := _reason || ', capped to not exceed list price';
            END IF;
        END IF;

    ELSIF _last_price IS NOT NULL AND _is_last_recent THEN
        _price := _last_price;
        _reason := 'Last price - no target';

    ELSIF _target_price IS NOT NULL THEN
        _price := _target_price;
        _reason := 'Target price - no prior sale';

    ELSE
        _price := NULL;
        _reason := 'No pricing available';
    END IF;

    RETURN QUERY SELECT _price, _reason;
END;
$$ LANGUAGE plpgsql;