Wholesale Candle Break-Even Chart
Cedar & Wick sells a wholesale candle for $14. The model uses $4,100 in fixed costs for design, setup, and production preparation, plus $6 per candle for materials and packing. Revenue reaches total cost at a little over 500 candles. This gives the maker a concrete production and sales threshold to discuss with wholesale accounts. It is not a substitute for a cash-flow forecast: supplier payment terms, inventory timing, freight, and returns can matter before the break-even quantity is reached. Model direct-to-consumer and wholesale channels separately because their price and fulfilment costs differ. Review the underlying definitions and totals before using this view to make an operational decision.
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Scenario
Wholesale production planning
Key decisions
- Set production run: Plan for more than 512 candles to cover costs.
- Compare channels: Test whether direct sales change the threshold.
- Review inputs: Update wax, vessel, and freight costs before ordering.
When to reuse this
Use for a product batch with stable unit prices and material costs.
Frequently asked questions
What is the estimated break-even quantity?
Are freight costs variable?
Why compare sales channels separately?
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