--- title: "Pricing So the Numbers Work" description: "For a one-product plan, check what buyers will pay and how many sales cover costs. Break-even means sales revenue equals total costs, including any fixed fee." canonical: https://lightmysky.com/learn/life-skills/pricing-so-the-numbers-work-mt_m4DGdFIm5h source: https://lightmysky.com/learn/life-skills/pricing-so-the-numbers-work-mt_m4DGdFIm5h.md retrieved: 2026-11-12 --- > **Agent view.** This is the Markdown twin of the page, for tools and assistants. > When to use this site, and the call that answers each job: https://lightmysky.com/agent-instructions.md > API description (OpenAPI 3.1): https://lightmysky.com/openapi.json · Authentication: https://lightmysky.com/auth.md > Pricing: https://lightmysky.com/pricing.md · Catalog: https://lightmysky.com/llms.txt · Full catalog: https://lightmysky.com/llms-full.txt > Every machine-readable file on this domain: https://lightmysky.com/.well-known/ai-catalog.json > Ask for Markdown with `Accept: text/markdown`, a `.md` address, or `?mode=agent`. # Pricing So the Numbers Work For a one-product plan, check what buyers will pay and how many sales cover costs. Break-even means sales revenue equals total costs, including any fixed fee. Subject: Life Skills · Area: Entrepreneurship · Ages 12 to 13 Page: https://lightmysky.com/learn/life-skills/pricing-so-the-numbers-work-mt_m4DGdFIm5h ## Ready when they can - Work out the cost of making one unit, including the parts people forget - Calculate how many units must sell to cover a fixed setup cost - Explain why cutting the price to sell more can leave you worse off ## Lesson: Price it so the numbers work You have tested what buyers want. Now check a price against costs. In these examples, you sell one product at a steady price and unit cost. Every item made is sold, and all other costs are the fixed fees listed. Below unit cost, each sale adds a loss. More such sales cannot cover a positive fixed fee. Unit cost here is the cost of making and selling one more item. Add materials, packaging, fees per sale and paid work per item. A flat stall fee is a fixed cost: it stays the same as sales change within this plan. Payment timing does not decide a cost's type. **Example.** A wristband needs $1 of string, a $1 clasp and a $1 bag: $3 unit cost. At a $6 price, unit margin is price minus unit cost: $6 minus $3 is $3. Each sale puts this amount toward fixed costs before there is any profit. *(drawing: $6 price minus $3 unit cost leaves $3 toward fixed costs.)* Break-even means revenue equals total costs, leaving zero profit. First find unit margin: price minus unit cost. With a positive margin, divide fixed cost by it to find the sales count that covers costs. For whole items, round up if the result is part of an item. This minimum whole-item count may leave a small profit rather than exactly zero. A zero or negative margin cannot cover a positive fixed fee. **Example.** The wristband stall fee is $72. Each sale contributes $3, so 72 divided by 3 gives 24 sales. Revenue is 24 times $6, or $144. Unit costs total 24 times $3, or $72. Adding the $72 fee gives $144 total costs. Revenue and total costs match, so profit is zero. After a price cut, find the new unit margin: new price minus unit cost. If it is positive, divide fixed cost by this margin. A $5 price minus $3 unit cost leaves $2. Dividing the $72 fee by $2 gives 36 sales instead of 24. With unchanged costs, fewer dollars remain from each sale. Extra sales might still make up the difference. To compare total profit, multiply each plan's unit margin by its sales count, then subtract its fixed cost. To compare sellers, find each unit margin: price minus unit cost. Divide each fixed fee by that seller's positive margin, rounding up for whole items if needed. Compare the required counts. To find how many fewer sales one needs, subtract the smaller count from the larger. Fewer required sales does not mean reaching cost coverage sooner, because sellers may sell at different speeds. **Recap.** Unit margin is price minus unit cost. With a positive margin, divide fixed cost by it and round up for whole items if needed. Check whether enough buyers will pay your price. *Lesson, questions and flashcards written for this dataset. Pricing and accounting records were consulted for facts and teaching structure.* ## Practice 8 questions on this page, each with its working shown. ## Needs first - [Finding Out If Anyone Wants It](https://lightmysky.com/learn/life-skills/finding-out-if-anyone-wants-it-mt_99X6saJ6Kt) ## Optional connections - [Costs & Revenue](https://lightmysky.com/learn/life-skills/costs-and-revenue-mt_9gpUHWVKMR) ## Opens up - [Doing It Right When Nobody Is Watching](https://lightmysky.com/learn/life-skills/doing-it-right-when-nobody-is-watching-mt_MViH0gLbvQ)