Build the full unit cost
Add shipping, customs, packaging, marketplace fees, payment charges and return assumptions to acquisition cost. Keep fixed and per-unit costs separate. Attach a quote, official schedule or test observation and date to every assumption. Use one currency; changing a currency label is not FX conversion.
Contribution and break-even
With price 100, variable cost 40 and monthly fixed cost 600, unit contribution is 60. At 15 sales, revenue is 1,500, operating result 300 and break-even 10 units. This exercise excludes tax and financing. A zero or negative contribution has no finite break-even volume.
Distinguish margin and markup
A cost of 40 at a target gross margin of 40% needs 40/(1-0.40), approximately 66.67. Multiplying cost by 1.40 is a different calculation. The tool reuses ITERAQ’s existing model and treats inputs as assumptions, not observed country or sales data. Also examine lower sales and higher costs.
Checklist
- Use one currency
- Separate fixed and variable costs
- Review a downside scenario
Working template
Copy the headings into your own working document. Do not enter identity data.
Price Variable cost Monthly fixed cost Sales units Evidence/date Downside assumption