12.5 is the example result. Read it using the units and relationship stated below.
Product Landed Cost uses product cost, freight per unit, duty per unit.
Protecting contribution before accepting a price
For product landed cost, the relationship is Result = [Product cost] + [Freight per unit] + [Duty per unit] + [Insurance per unit]. The amount depends on the supplied product cost, freight per unit, rather than a live market price or a value imported from another record. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
What the model includes
Result = [Product cost] + [Freight per unit] + [Duty per unit] + [Insurance per unit] A pricing review should retain the supplier cost, sale price and the reason for any allowance. Returns, payment charges, delivery and tax require explicit treatment; they should not disappear inside a percentage labelled profit. Compare the proposed price with the customer agreement and delivery capacity. A mathematically achievable margin does not establish that buyers will accept the offer.
Example with the supplied inputs
Product cost: 10; Freight per unit: 1.5; Duty per unit: 0.8; Insurance per unit: 0.2. Result: 12.5. The values are illustrative.
Compare one changed input
Product cost changes from 10 to 11. The result becomes 13.5. All other inputs remain fixed.
Calculation rule
Result = [Product cost] + [Freight per unit] + [Duty per unit] + [Insurance per unit]
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Product cost | 10 | Use product cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Freight per unit | 1.5 | Use the source quantity represented by freight per unit. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Duty per unit | 0.8 | Use the source quantity represented by duty per unit. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Insurance per unit | 0.2 | Use the source quantity represented by insurance per unit. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 12.5 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Product cost, Freight per unit, Duty per unit. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Product cost on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 12.5.
Change Product cost from 10 to 11 while keeping every other value fixed. The result becomes 13.5. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026