What it does
Answers the question: how many orders before I stop losing money? It factors in variable cost, percentage fees, and a fixed fee per order to show the break-even point clearly.
Pricing and Profit
Find out how many sales you need to cover fixed costs once per-order costs and fees are factored in.
Answers the question: how many orders before I stop losing money? It factors in variable cost, percentage fees, and a fixed fee per order to show the break-even point clearly.
Contribution per order = sale price - variable cost - percentage fee amount - fixed fee per order. Break-even units = fixed costs / contribution per order. Target-profit units = (fixed costs + target profit) / contribution per order.