Food & Beverage Manufacturing worked example

CPG Unit Margin with net selling price per unit of 1.18 $ / unit: a worked example

Suppose net selling price per unit falls to 1.18 $ / unit. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate unit margin by comparing net selling price with total cost on the same unit, case, or retail-pack basis.

The inputs for this scenario

  • Net selling price per unit: 1.18 $ / unit (the input this scenario stresses; the baseline uses 2.35)
  • Total landed cost per unit: 1.72 $ / unit (held at the documented default)
  • Net selling price (margin basis): 2.35 $ / unit (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: CPG Unit Margin amount gap = net selling price per unit - total cost per unit.
  • CPG Unit Margin margin works out to -22.98 % margin at these inputs, and this is the headline figure for the scenario.
  • CPG Unit Margin amount gap works out to -0.54 value at these inputs.
  • Net selling price per unit works out to 1.18 value at these inputs.
  • Total cost per unit works out to 1.72 value at these inputs.

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 186% below the baseline at -22.98 % margin.
  • It computes the gross margin percentage on one unit by dividing the price-minus-cost gap by the net selling price. 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

  • CPG Unit Margin margin: -22.98 % margin (headline result)
  • CPG Unit Margin amount gap: -0.54 value
  • Net selling price per unit: 1.18 value
  • Total cost per unit: 1.72 value

Run it with your numbers

  • To rerun this with your own numbers, open the live CPG Unit Margin calculator, set net selling price per unit to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.