Method and assumptions
A discount reduces both revenue and the fee base, but most product and fulfillment costs remain unchanged. Use the maximum discount result as a boundary, not a recommended promotion.
Discounted price = list price × (1 - discount). Profit = discounted revenue - unit costs - percentage fees.
Common questions
Does the maximum discount include fixed overhead?
No. It covers entered unit costs and percentage fees. Add an allocated unit cost when overhead must be recovered.
Why can a small discount reduce profit sharply?
Discounts are taken from revenue, while product and fulfillment costs usually remain fixed.
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