The following examples use price simulation for quotation headers and single line items.
Quotation
header price simulation
If you create a quotation with the following lines:
10 units of item BR-12 (cost price per unit USD 9.52 and sales price per unit USD 15.32).
12 units of item BR-14 (cost price per unit USD 7.48 and sales price per unit USD 13.75).
The quotation lines are as follows:
|
Calculation |
Result |
|
|
Sales quantity |
10 units + 12 units |
22 units |
|
Sales value in USD |
((10*15.32) + (12*13.75)) |
318.20 |
|
Cost value in USD |
((10*9.52) + (12*7.48)) |
184.96 |
|
Contribution margin in USD |
(318.20 – 184.96) |
133.24 |
|
Contribution ratio |
((318.20 – (10*9.52)/318.20) * 100) |
41.87 % |
If you run a price simulation and apply a 15% total discount for the entire quotation, or quotation header, the new totals of the quotation with the price simulation are as follows:
|
Calculation |
Result |
|
|
Sales quantity |
10 units + 12 units |
22 units |
|
Old sales value in USD |
((10*15.32) + (12*13.75)) |
318.20 |
|
Old cost value in USD |
((10*9.52) + (12*7.48)) |
184.96 |
|
Old contribution margin in USD |
(318.20 – 184.96) |
133.24 |
|
Old contribution ratio |
((318.20 – (10*9.52)/318.20) * 100) |
41.87 % |
|
Price simulation 15% total discount in USD |
(15*318.2)/100 |
47.73 |
|
New sales value in USD |
(318.20 – 47.73) |
270.47 |
|
New contribution margin in USD |
(270.47 – 184.96) |
85.51 |
|
New contribution ratio |
((270.47 – 184.96)/270.47) * 100) |
31.61 % |
Single line
item price simulation
If you create a quotation with the following lines:
10 units of item BR-12 (cost price per unit USD 9.52 and sales price per unit USD 15.32).
12 units of item BR-14 (cost price per unit USD 7.48 and sales price per unit USD 13.75).
The quotation lines are as follows:
|
Result |
Calculation |
|
|
Sales quantity |
10 units + 12 units |
22 units |
|
Sales value in USD for BR-12 |
10*15.32 |
153.20 |
|
Sales value in USD for BR-14 |
12*13.75 |
165.00 |
|
Cost value in USD for BR-12 |
10*9.52 |
95.20 |
|
Cost value in USD for BR-14 |
12*7.48 |
89.76 |
|
Contribution margin in USD for BR-12 |
153.20 – 95.20 |
58.00 |
|
Contribution margin in USD for BR-14 |
165.00 – 89.76 |
75.24 |
|
Contribution ratio in USD for BR-12 |
((153.20 – 95.20)/153.20) * 100 |
37.86 |
|
Contribution ratio in USD for BR-14 |
((165.00 – 89.76)/165.00) * 100 |
45.60 |
|
Total sales value in USD |
((10*15.32) + (12*13.75)) |
318.20 |
|
Total cost value in USD |
((10*9.52) + (12*7.48)) |
184.96 |
|
Total contribution margin in USD |
(318.20 – 184.96) |
133.24 |
|
Total contribution ratio |
((318.20 – 184.96)/318.20) * 100) |
41.87 % |
If you run a price simulation and apply a 10% total discount to the BR-12 units, the new totals of the quotation with the single line item price simulation are as follows:
|
Calculation |
Result |
|
|
Sales quantity |
10 units + 12 units |
22 units |
|
Old sales value in USD for BR-12 |
(10*15.32) |
153.20 |
|
Price simulation, 10% discount for BR-12 |
(10*153.2)/100 |
15.32 |
|
New sales value in USD for BR-12 |
(10*15.32) – 15.32 |
137.88 |
|
Sales value in USD for BR-14 |
12*13.75 |
165.00 |
|
Cost value in USD for BR-12 |
10*9.52 |
95.20 |
|
Cost value in USD for BR-14 |
12*7.48 |
89.76 |
|
New contribution margin in USD for BR-12 |
137.88 – 95.20 |
42.68 |
|
Contribution margin in USD for BR-14 |
165.00 – 89.76 |
75.24 |
|
New contribution ratio in USD for BR-12 |
((137.88 – 95.20)/137.88) * 100 |
30.95 |
|
Contribution ratio in USD for BR-14 |
((165.00 – 89.76)/165.00) * 100 |
45.60 |
|
New total sales value in USD |
((10*15.32 – 15.32) + (12*13.75)) |
302.88 |
|
Total cost value in USD |
((10*9.52) + (12*7.48)) |
184.96 |
|
New total contribution margin in USD |
(302.88 – 184.96) |
117.92 |
|
New total contribution ratio |
((302.88 – 184.96)/302.88) * 100) |
38.91 % |
The price simulation only affects the line for which it is applied, reducing the total for that line.
