Food & Beverage Manufacturing worked example

CPG Unit Margin with net selling price per unit of 5.88 $ / unit: a worked example

What does the result look like when net selling price per unit reaches 5.88 $ / unit? The full calculation is worked below with real intermediate numbers. Use it for branded, private-label, co-packed, promotional, or club-pack CPG products where ingredient, packaging, conversion, freight, and trade costs affect margin.

The inputs for this scenario

  • Net selling price per unit: 5.88 $ / unit (raised for this scenario; the documented default is 2.35)
  • Total landed cost per unit: 1.72 $ / unit (unchanged)
  • Net selling price (margin basis): 2.35 $ / unit (unchanged)

Working through the calculation

  • Applying the documented formula (CPG Unit Margin amount gap = net selling price per unit - total cost per unit) to the inputs above produces each figure below.
  • At this operating point the engine returns 177 % margin for cpg unit margin margin, the number this scenario is built around.
  • At this operating point the engine returns 4.16 value for cpg unit margin amount gap.
  • At this operating point the engine returns 5.88 value for net selling price per unit.
  • At this operating point the engine returns 1.72 value for total cost per unit.

How this compares with the baseline

  • Against the tool's baseline example, where net selling price per unit sits at 2.35 $ / unit and the headline result is 26.81 % margin, this scenario comes in 560% above the baseline at 177 % margin.
  • A figure at this level is achievable when net selling price per unit is genuinely sustained, not just peaked for a shift. It is a gross unit margin only — it ignores trade spend, slotting fees, freight to retailer, spoilage, and returns, so true pocket margin is lower.

Results at a glance

  • CPG Unit Margin margin: 177 % margin (headline result)
  • CPG Unit Margin amount gap: 4.16 value
  • Net selling price per unit: 5.88 value
  • Total cost per unit: 1.72 value

Run it with your numbers

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

Last reviewed 2026-05-12.