How much extra volume does a price cut need?

Illustrative — not Simbisa’s margins

3% price cut5% price cut

Additional sales volume required (%)

010203020%30%40%60%17.6%11.1%8.1%5.3%33.3%20.0%14.3%9.1%

Original contribution margin (%)

Preserves total contribution; assumes unchanged variable cost per unit and fixed costs.