Calculate Contribution Break-Even
Calculate contribution per unit and break-even volume for a proposed service package.
Premium onboarding sells for $4,000. Variable cost is $1,100 of specialist time plus $300 partner fee. Fixed staffing is $36,000 per month. The team expects 30 packages monthly and needs to know if the package is economically sound. Contribution per unit = price - variable cost; break-even units = fixed cost / contribution per unit. The common shortcut is to call the $4,000 price pure revenue and ignore the variable delivery cost. That makes break-even look much easier than it is and can turn a service launch into a gross-margin drag. Price $4,000 package price Start with the customer payment,…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in