Price with a plan

Tally chooses a pretend price of €3 per bookmark. Cash asks a different question: how many sales bring back the €16 already paid? Five sales bring €15. That is not quite enough. Six sales bring €18.

Six is the first whole-number sales count that covers this batch's cash outlay. It does not guarantee six buyers. Changing the price also does not tell us how people will respond. A higher price might bring more per sale and still attract fewer customers. We need evidence, not a bigger number on a tag.

What you will learn

Find the sales needed to recover this fixed batch outlay.

Worked example

5 × €3 = €15, below €16. 6 × €3 = €18, above €16. This fixed batch needs six sales to recover its cash outlay.

Your paper activity

Make a small table for zero to eight sales. Multiply each by €3. Circle the first row that reaches at least €16.

For the grown-up

This is cash recovery for a batch paid upfront, not a universal per-item contribution-margin formula.

Next lesson: The till is not the profit.

Illustrations made with AI.