Flavors, Fragrances & Aroma Chemicals worked example

Quote Margin with proposed selling price or revenue of 47 $ / kg: a worked example in flavors, fragrances & aroma chemicals

This scenario runs the quote margin calculation on the strong side: proposed selling price or revenue of 47 $ / kg, with every other input held at its documented default. Use it when checking whether raw materials, yield loss, QC, packaging, freight, and minimum order assumptions still support the quoted price.

The inputs for this scenario

  • Proposed selling price or revenue: 47 $ / kg (raised for this scenario; the documented default is 18.75)
  • Required full cost: 14.2 $ / kg (unchanged)
  • Reference selling price: 18.75 $ / kg (unchanged)

Working through the calculation

  • Applying the documented formula (Quote Margin amount gap = proposed selling price or revenue - required full cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 175 % for quote margin, the number this scenario is built around.
  • At this operating point the engine returns 32.8 value for quote margin amount gap.
  • At this operating point the engine returns 47 value for proposed selling price or revenue.
  • At this operating point the engine returns 14.2 value for required full cost.

How this compares with the baseline

  • Against the tool's baseline example, where proposed selling price or revenue sits at 18.75 $ / kg and the headline result is 24.27 %, this scenario comes in 621% above the baseline at 175 %.
  • Use it when pricing a new flavor or fragrance quote, vetting a customer's target price, or comparing a proposed price against a standard reference list price. 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

  • Quote Margin: 175 % (headline result)
  • Quote Margin amount gap: 32.8 value
  • Proposed selling price or revenue: 47 value
  • Required full cost: 14.2 value

Run it with your numbers

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

Last reviewed 2026-05-12.