Profit per sale

Training 915 minutesprofit per sale

You are 29 and run a small T-shirt print shop. A shirt sells for $20, about 150 orders a month. The till looks busy, yet little is left by month end.

Training goal: Find out what one shirt really earns

Situation

1. A shirt sells for $20. The blank costs $6, ink $2, the bag and card fee $2. What does one sale bring in?

2. Fixed costs are $1,200 a month: rent $600, heat press lease $300, ads $300. How many shirts must you sell to break even?

3. A school wants 100 shirts at $14 each. Your press sits idle half the week. Take the order?

4. An ad agency offers another campaign at $300 a month and promises +20 orders. Worth it?

5. The supplier raises the blank from $6 to $7. Just one dollar. What now?

Take your main product or service. Write down its price and every per-unit cost, then divide monthly fixed costs by that margin.

How do I calculate profit per sale?

Subtract every variable cost per unit from the price: materials, packaging, fees, piece-rate pay. What remains is the contribution margin.

How do I calculate the break-even point?

Divide monthly fixed costs by the margin per sale. With $1,200 of costs and a $10 margin, you need 120 sales a month.

What is the difference between fixed and variable costs?

Variable costs grow with each sale: materials, packaging, fees. Fixed costs stay the same at any volume: rent, leases, salaried staff.

Numbers are illustrative. A game, not financial advice.