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

Order Profitability at 70% expected shippable yield: a worked example

Suppose expected shippable yield falls to 70%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate expected contribution dollars for a make-to-order customer order.

The inputs for this scenario

  • Contribution margin per shipped unit: 18.5 $ / unit (held at the documented default)
  • Customer order quantity: 950 units (held at the documented default)
  • Expected shippable yield (first-pass acceptance): 70 % (the input this scenario stresses; the baseline uses 97)
  • Collectable order scope (commercially firm portion): 100 % (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: gross order contribution before risk = contribution margin per shipped unit × customer order quantity.
  • expected order contribution works out to 12,303 $ at these inputs, and this is the headline figure for the scenario.
  • gross order contribution before risk works out to 17,575 $ at these inputs.
  • contribution at risk from yield loss works out to 5,273 $ at these inputs.
  • contribution at risk from commercial uncertainty works out to 0 $ at these inputs.

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 27.84% below the baseline at 12,303 $.
  • It computes the expected dollar contribution of a single customer order after derating gross contribution for first-pass yield loss and the commercially firm (collectable) portion of the order. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • expected order contribution: 12,303 $ (headline result)
  • gross order contribution before risk: 17,575 $
  • contribution at risk from yield loss: 5,273 $
  • contribution at risk from commercial uncertainty: 0 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Order Profitability calculator, set expected shippable yield to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.