What the result shows
The new monthly profit if price and sales volume stay fixed, plus the break-even price and the price needed to preserve today’s profit.
Use one product or a reliable average. Keep sales volume fixed so you can isolate the effect of the cost increase.
Price needed to preserve profit
$87.50
Keeping the same monthly profit at the entered sales volume would require a $7.50 increase per unit. Without it, monthly profit changes from $25,000 to $17,500.
The new monthly profit if price and sales volume stay fixed, plus the break-even price and the price needed to preserve today’s profit.
Apply the entered increase to product cost and freight separately. Subtract the new unit cost and monthly overhead from sales at the current price and volume.
Compare the required price increase with supplier savings, packaging changes, new terms, bundles, or accepting a lower margin. Test customer demand before changing the price.
Sales volume is held steady. Tax, discounts, payment fees, channel fees, product mix, and stock bought before the increase are not included.
Find how far you can discount slow stock today and when storage costs use up the profit you wanted to keep.
See whether matching a competitor’s lower price would still cover each sale and keep the margin you want.
Browse tools for profit, cash, pricing, inventory, funding, and operating costs.
Nummbas brings sales, costs, products, ads, and cash flow into one view so the numbers change when the business does.