Work the Break-Even Math
Calculate contribution per unit and break-even volume for a fixed monthly cost.
A warehouse tool costs $24,000 per month. Each incremental order creates $12 of contribution after variable costs. Customer cash is collected about two weeks after shipment. Break-even units = fixed cost / contribution per unit The common shortcut is to justify the tool with operational usefulness alone. That skips the P&L impact of the fixed monthly cost, the cash timing of vendor payments, and the unit-economics question of how many orders must actually improve. Step 1 Identify the fixed cost: $24,000 per month. This is the P&L burden. It appears whether the warehouse improves one order or ten thousand orders.…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in