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Discount and Contribution Retention Table

See how discounts on a $100 price change contribution and replacement sales volume when the unchanged variable cost is $60 per unit.

By PriceAndProfit Editorial Updated

The table holds variable cost at $60 and compares every sale with the original $40 contribution. A 20% price discount halves contribution, so twice as many units are required to keep the original total. The extra volume is a mathematical requirement, not evidence that the offer will attract enough buyers.

Sale price = 100 × (1 − discount); contribution = sale price − 60; required volume multiple = 40 ÷ new contribution
Hypothetical worked values; no market or statutory rates
Discount on $100Sale priceUnit contributionVolume to retain old contribution
0% $100 $40 1.00×
10% $90 $30 1.33×
20% $80 $20 2.00×
30% $70 $10 4.00×
40% $60 $0 No positive contribution
50% $50 −$10 No contribution recovery through volume

How to read and reuse this example

Use the volume multiple against a realistic unit forecast and then check labor, stock and fulfillment capacity. At a 10% discount the exact multiple is 4/3; the displayed 1.33 is rounded. For a whole-unit plan, multiply using the exact ratio and round the required sales upward rather than multiplying by the displayed approximation.

Boundaries and exceptions

At 40% off there is no contribution left for positive fixed costs. Below that price, additional sales increase the contribution loss. Fixed costs, percentage fees and changing order sizes are not modeled here. If any of them changes with the promotion, rebuild the contribution boundary before applying the volume comparison.

Method reference: OpenStax: Break-Even Points in Units and Dollars. Checked October 22, 2026. Contribution and cost-volume-profit relationships; examples are independently constructed.

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