Pricing Tool 08

Contribution
Margin

Revenue minus variable costs only - no fixed overhead. Understand what each unit truly contributes to covering fixed costs and generating profit. Critical for pricing decisions and break-even analysis.

1Product & Pricing

Product Name

Channel

Annual Units Sold

Selling Price per Unit ($)

WS, retail, or net revenue per unit

Annual Revenue

MSRP ($) - for reference

2Variable Costs per Unit

Enter only costs that scale directly with each unit sold. Fixed overhead stays out.

COGS - Product Cost ($)

Factory cost, materials

Inbound Freight ($ per unit)

Ocean, air, or LCL per unit

Duty / Tariff ($ per unit)

Or leave 0 if duty-free

3PL / Fulfillment ($ per unit)

Pick, pack, ship per unit

Channel Fee (% of revenue)

Commission, platform fee, rep %

Channel Fee ($ computed)

Payment Processing (% of rev)

Credit card, Faire, Stripe etc.

Returns / Allowance (% of rev)

Avg % of units returned or allowanced

Variable Marketing ($ per unit)

Catalog inserts, samples, co-op

Total Variable Cost per Unit

Variable Cost as % of Revenue

3Volume Scenarios

Low Volume (units)

Base Volume (units)

High Volume (units)

Contribution Margin Ratio - per unit sold

CM per
Unit

Annual CM
(Base Vol.)

contribution

Variable
Cost %

Variable Cost Waterfall - Per Unit

Selling Price -

− Product COGS -

− Inbound freight -

− Duty / tariff -

− 3PL / fulfillment -

− Channel fee -

− Payment processing -

− Returns / allowance -

− Variable marketing -

Contribution Margin / Unit -

Fixed costs are excluded - applied separately against total CM pool

Volume Sensitivity

Volume	Revenue	Total CM	CM Ratio

P23-EDU · TWENTY3 Intelligence Pricing Tool 08 · Contribution Margin Calculator · Variable Costs Only - No Fixed Overhead · CM per Unit · CM Ratio · Volume Sensitivity Analysis · Break-Even Unit Count · P23-EDU · TWENTY3 Intelligence Pricing Tool 08 · Contribution Margin Calculator · Variable Costs Only - No Fixed Overhead · CM per Unit · CM Ratio · Volume Sensitivity Analysis ·