Supply Chain & Procurement worked example

Landed Cost Calculator with units in shipment of 500 units: a worked example

Suppose units in shipment falls to 500 units. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate landed cost from item cost, freight, duties, and handling burden.

The inputs for this scenario

  • Units in shipment: 500 units (the input this scenario stresses; the baseline uses 1,000)
  • Ex-works unit price: 12 $ / unit (held at the documented default)
  • Freight and duty: 1,800 $ (held at the documented default)
  • Brokerage and handling: 600 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total cost = quantity × variable cost + labor/setup + burden.
  • Total landed cost works out to 8,400 $ at these inputs, and this is the headline figure for the scenario.
  • Cost per unit works out to 16.8 $ / piece at these inputs.
  • Variable landed cost works out to 6,000 $ at these inputs.
  • Fixed landed cost adders works out to 2,400 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where units in shipment sits at 1,000 units and the headline result is 14,400 $, this scenario comes in 41.67% below the baseline at 8,400 $.
  • It sums variable cost across the order quantity with fixed labor/setup and overhead burden to produce a total landed cost and a true blended cost per unit. 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

  • Total landed cost: 8,400 $ (headline result)
  • Cost per unit: 16.8 $ / piece
  • Variable landed cost: 6,000 $
  • Fixed landed cost adders: 2,400 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Landed Cost Calculator calculator, set units in shipment to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.