Coffee, Tea, Roasting & Dry Goods Processing worked example

Margin with order or sku sales value of 9,300 units: a worked example in coffee, tea, roasting & dry goods processing

This worked example runs the margin numbers for a tougher week than the baseline: order or sku sales value of 9,300 units instead of the typical 18,500 units. Calculate product margin percentage from sales value, finished goods cost, and reference sales value.

The inputs for this scenario

  • Order or SKU sales value: 9,300 units (the input this scenario stresses; the baseline uses 18,500)
  • Finished goods cost: 12,600 units (held at the documented default)
  • Reference sales value for the margin base: 18,500 units (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Gross margin dollars = order or SKU sales value - finished goods cost.
  • margin works out to -17.84 % at these inputs, and this is the headline figure for the scenario.
  • gross margin dollars works out to -3,300 value at these inputs.
  • order or SKU sales value works out to 9,300 value at these inputs.
  • finished goods cost works out to 12,600 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where order or sku sales value sits at 18,500 units and the headline result is 31.89 %, this scenario comes in 156% below the baseline at -17.84 %.
  • Use it when quoting an order, reviewing SKU profitability, or testing whether a price still holds after a green-coffee or packaging cost increase. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • margin: -17.84 % (headline result)
  • gross margin dollars: -3,300 value
  • order or SKU sales value: 9,300 value
  • finished goods cost: 12,600 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Margin calculator, set order or sku sales value to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.