Unit Economics & Fixed Costs
Selling Price per Unit650 ETB
Cost of Goods Sold (COGS) per Unit380 ETB
Monthly Fixed Overhead (Rent, Wages, Utilities)25,000 ETB
Estimated Monthly Sales Volume150 Units
10 units500 units1,000 units
Monthly Break-Even Point
93units / month
Requires 60,450 ETB in monthly sales just to cover fixed overhead.
Gross Profit / Unit
+270 ETB
Gross Margin %
41.5%
Projected Net Profit @ 150 Units
+15,500 ETB / mo
Profitable
Margin Rule of Thumb
In retail and hospitality, a gross margin below 30% leaves little safety for unpredictable costs like electricity outages, spoiled inventory, or rent increases. Aim for 35% to 50% gross margin on retail items.
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