Mount armor!

Mithral Medium
200g x 4 + 4000g = 4800g
AC+5 Max Dex+5 ArmorCheckPenalty-1
weight 30 lbs
Much more reasonable if your right about where the multiplication takes place. (to me it made more sense to multiply the cost after... more material, right?). Weight isn't a huge deal as a light load for a magebred hippogriff is 399 lbs, assuming you put the +2 on strength and not the +4

Chain Light
100g x 4 +150g = 550g
AC+4 Max Dex+4 ACP-1
weight 50 lbs
still a drastic reduction in cost going by your rules, though 4800g is still fairly reasonable.

lets introduce a third option
light adamantine
100g x 4 + 5000g = 5400g
AC+4 Max Dex+4 ACP-1 Damage reduction 1/adamintine
weight 50 lbs (armor is also a lot tougher, with increased hardness and hit points, not that mounts armor is often sundered but whatever)

with the new cost system I think i would go with light chain unless i found myself with a lot of extra money (after all 4000g could be put toward better things then +1 AC to my mount)
 
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