Illustrative example · synthetic inputs · not a client result
More volume can produce less contribution.
Suppose a sales leader is comparing two territory plans over the same period. The model below asks which produces more contribution after variable delivery cost and incremental commercial spend. All figures are invented for this demonstration.
Synthetic comparison of two commercial options in US dollars| Assumption or output | Option A | Option B |
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| Units sold | 100 | 120 |
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| Price per unit | $1,000 | $900 |
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| Variable delivery cost per unit | $600 | $600 |
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| Incremental commercial spend | $5,000 | $8,000 |
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| Revenue | $100,000 | $108,000 |
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| Contribution after the costs shown | $35,000 | $28,000 |
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Contribution = units × (price − variable delivery cost) − incremental commercial spend. This simplified measure excludes fixed overhead, taxes and other costs; it is not net profit.
Option B produces more revenue but less contribution under these assumptions. At its stated price and costs, B would need at least 144 units to exceed A’s $35,000 contribution. That threshold is a question to investigate, not a demand prediction.
A real decision needs evidence for price response, capacity, customer value and cost. The model makes the tradeoff visible; it does not establish which option customers will choose or what the business will achieve.