If you knew that you would be selling, say, a thousand widgets a week you could arrive at an exact cost per unit, to which you would add a profit margin.
This means unit costs will vary, since your fixed costs will remain substantially the same no matter how many or how few sales are made. I know exactly what’s coming when people out of the blue message me and ask me how big my list is. It can make sense in some circumstances because, as long the price is greater than direct production costs, a contribution is made towards overheads.
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