Contract Manufacturing, Job Shop Quoting & Make-to-Order worked example

Order Profitability at 99% expected shippable yield: a worked example

This scenario runs the order profitability calculation on the strong side: 99% expected shippable yield, with every other input held at its documented default. deciding whether a customer order is attractive enough to accept or prioritize

The inputs for this scenario

  • Contribution margin per shipped unit: 18.5 $ / unit (unchanged)
  • Customer order quantity: 950 units (unchanged)
  • Expected shippable yield (first-pass acceptance): 99 % (raised for this scenario; the documented default is 97)
  • Collectable order scope (commercially firm portion): 100 % (unchanged)

Working through the calculation

  • Applying the documented formula (gross order contribution before risk = contribution margin per shipped unit × customer order quantity) to the inputs above produces each figure below.
  • At this operating point the engine returns 17,399 $ for expected order contribution, the number this scenario is built around.
  • At this operating point the engine returns 17,575 $ for gross order contribution before risk.
  • At this operating point the engine returns 176 $ for contribution at risk from yield loss.
  • At this operating point the engine returns 0 $ for contribution at risk from commercial uncertainty.

How this compares with the baseline

  • Against the tool's baseline example, where expected shippable yield sits at 97% and the headline result is 17,048 $, this scenario comes in 2.06% above the baseline at 17,399 $.
  • Use it during quote acceptance, order prioritization, and capacity-fill decisions when you need to rank jobs by real risk-adjusted cash contribution rather than raw revenue. 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

  • expected order contribution: 17,399 $ (headline result)
  • gross order contribution before risk: 17,575 $
  • contribution at risk from yield loss: 176 $
  • contribution at risk from commercial uncertainty: 0 $

Run it with your numbers

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

Last reviewed 2026-05-12.