About

Mispricing a single case by $0.50 across 10,000 cases erodes $5,000 in margin before anyone notices. The Average Price per Case (APC) is the foundational metric in wholesale, distribution, and retail procurement. It aggregates invoice price, freight allocation, duties, and handling fees into a single per-case landed cost. This calculator computes APC, derives the per-unit cost from units per case, and then resolves markup percentage, gross margin, and break-even volume. It assumes FOB or CIF pricing conventions and does not account for currency fluctuation or volume rebates applied retroactively.

Errors in APC propagate downstream into retail price tags, POS systems, and quarterly P&L statements. A 2% freight miscalculation on perishable goods with 18% gross margin can flip a product line from profitable to loss-making. This tool uses explicit landed-cost decomposition so each cost component is visible and auditable. Note: the break-even formula assumes linear cost behavior and does not model step-fixed costs or economies of scale beyond the stated range.

Formulas

The landed cost per case aggregates all cost components into a single figure. The Average Price per Case (APC) is computed as:

APC = (P − D) × Q + F + HQ

Where P = invoice price per case, D = discount amount per case, Q = quantity of cases, F = total freight cost, H = total handling and miscellaneous fees.

The unit cost derives from dividing the landed case cost by the pack count:

Unit Cost = APCU

Where U = units per case.

Markup and margin are distinct metrics often confused. Markup is cost-referenced; margin is revenue-referenced:

Markup = S − CC × 100

Margin = S − CS × 100

Where S = selling price per unit, C = cost per unit (the unit cost derived above).

Break-even volume determines the minimum number of units that must be sold to cover fixed costs:

BE = FCS − C

Where FC = total fixed costs, S = selling price per unit, C = variable cost per unit. The result is rounded up since partial units cannot be sold.

Reference Data

Cost Component	Typical Range	Impact on APC	Industry Notes
Invoice Price (FOB)	$5 - $500 per case	Primary driver (60 - 85%)	Negotiated per PO; volume discounts common
Freight / Shipping	3 - 15% of invoice	Significant for heavy/bulky goods	Container rates fluctuate seasonally
Import Duties / Tariffs	0 - 25%	Varies by HS code and origin	Check HTS schedule; FTA exemptions may apply
Handling / Warehousing	$0.10 - $3.00 per case	Fixed per-case overhead	Includes palletization, labeling, put-away
Insurance	0.2 - 0.5% of CIF value	Minor but mandatory for imports	Marine cargo or inland transit policies
Trade Discount	1 - 10%	Reduces effective invoice price	Early-pay (2/10 net 30) or volume tiers
Markup (Wholesale → Retail)	20 - 100%	Determines selling price	Keystone = 100% markup
Gross Margin (Grocery)	15 - 30%	Target margin drives price ceiling	Perishables trend lower; premium brands higher
Gross Margin (Electronics)	5 - 15%	Thin margins require tight APC control	Volume-dependent; accessory margins subsidize
Gross Margin (Apparel)	40 - 65%	Higher margin absorbs markdowns	Seasonal clearance erodes realized margin
Gross Margin (Pharma/Supplements)	50 - 80%	Premium pricing supports R&D recovery	Regulatory compliance adds hidden cost
Shrinkage / Loss Allowance	0.5 - 3%	Increases effective APC	Perishables, fragile goods, high-theft SKUs
Payment Terms Discount	1 - 3%	Reduces net cost if taken	2/10 net 30 = 36.7% annualized return
Fixed Overhead Allocation	Varies	Allocated per case for break-even	Rent, salaries, utilities divided by throughput
Break-Even Volume	Varies	Minimum cases to cover fixed costs	Critical for new product launches
Contribution Margin	P − VC	Per-unit profit before fixed costs	Must be positive for viability

Frequently Asked Questions

Freight can be allocated per-case (divide total freight by total cases) or by weight/volume. Per-case allocation assumes uniform case dimensions and weight. If cases vary significantly in size, weight-based allocation using the formula F_i = F_total × (W_i ÷ W_total) yields a more accurate per-SKU APC. This calculator uses uniform per-case allocation.

A 50% markup on a $10 item yields a $15 sell price. The margin on that same transaction is 33.3%. If a buyer negotiates a 50% margin thinking it equals 50% markup, the required sell price jumps to $20. This $5 per-unit error across 10,000 units is a $50,000 pricing mistake.

Enter the discount as a percentage in the discount field. A 2/10 net 30 term means 2% off if paid within 10 days. The annualized return of taking this discount is approximately 36.7%, calculated as (0.02 ÷ 0.98) × (365 ÷ 20). Always take the discount if cash flow permits.

Break-even equals FC ÷ (S − C). If selling price equals or is less than variable cost per unit, the denominator is zero or negative. This means every unit sold loses money and no volume of sales can recover fixed costs. The product is not viable at that price point.

Not directly. To incorporate shrinkage, reduce the effective units per case. For example, if a case contains 24 units but historical shrinkage is 4%, enter 23 as units per case. This inflates the per-unit cost to reflect the true sellable yield and prevents margin erosion on perishable or fragile SKUs.

Import duties are typically assessed as a percentage of CIF (Cost, Insurance, Freight) value, not the FOB invoice price alone. In this calculator, enter the total duty amount in the handling/fees field. For accuracy, compute duties externally as Duty = (Invoice + Freight + Insurance) × Rate and enter the resulting dollar figure.