Configure-to-Order & Product Configuration worked example

Product Variant Profitability at 110% share of margin attributed to this variant: a worked example

This scenario runs the product variant profitability calculation on the strong side: 110% share of margin attributed to this variant, with every other input held at its documented default. evaluating whether a configured variant earns enough margin

The inputs for this scenario

  • Configured variant units sold: 95 units (unchanged)
  • Contribution margin per configured unit: 1,380 $ / unit (unchanged)
  • Share of margin attributed to this variant: 110 % (raised for this scenario; the documented default is 100)
  • Fixed variant support cost: 22,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable product variant profitability = configured variant units sold × contribution margin per configured unit × profitability scope included) to the inputs above produces each figure below.
  • At this operating point the engine returns 166,210 $ for total product variant profitability, the number this scenario is built around.
  • At this operating point the engine returns 1,750 $ / piece for product variant profitability per configured unit or quote.
  • At this operating point the engine returns 144,210 $ for variable product variant profitability.
  • At this operating point the engine returns 22,000 $ for fixed variant support cost.

How this compares with the baseline

  • Against the tool's baseline example, where share of margin attributed to this variant sits at 100% and the headline result is 153,100 $, this scenario comes in 8.56% above the baseline at 166,210 $.
  • Use it during catalog rationalization, annual product reviews, or when weighing whether a niche variant justifies its sustaining engineering and documentation cost. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • total product variant profitability: 166,210 $ (headline result)
  • product variant profitability per configured unit or quote: 1,750 $ / piece
  • variable product variant profitability: 144,210 $
  • fixed variant support cost: 22,000 $

Run it with your numbers

  • Every input above is editable in the live Product Variant Profitability calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.