Landed
The three costs that do not amortise away
Tooling gets cheaper per unit forever as the order grows. Freight, duty and scrap do not. They are why ten times the break quantity still does not reach the rate you were quoted, and why no quantity ever will.
What is left at the bottom
Freight
Spread, but never removed.
One shipment costs what it costs. A larger order does not pay more freight, it pays the same freight over more units, so this share falls with quantity and then flattens. At the shipped defaults it is $1.20 a unit at 1,000 and $0.06 at 18,670.
Duty
A percentage, so it scales with the goods.
Duty is a rate on value, not a fixed charge, so it does not amortise at all. It falls only because the value it is charged on falls. At 4.5% it stays 4.5%, at every quantity, forever.
Scrap
The only one that is pure yield.
Every good unit carries its share of the units scrapped alongside it. That ratio does not change with order size, so scrap is the one share whose PROPORTION of the price actually rises as everything else amortises away.
Incoterms
Who pays which part, and where the duty is assessed
EXW · Ex Works
You pay everything from their door
FOB · Free On Board
They load; you pay freight, insurance and duty
CIF · Cost, Insurance and Freight
They pay freight to port; you pay duty inland
DDP · Delivered Duty Paid
They pay everything, duty included
This site’s model charges duty on cost of goods BEFORE freight, which is the FOB shape, and it says so rather than burying it. The distinction is not academic: the United States assesses duty on the transaction value, which excludes international freight, while the European Union and the United Kingdom assess on the CIF value, which includes it. The same rate on the same goods is a different number depending on where they land.
A quotation that does not name its incoterm has not told you what it includes. It is the cheapest question to ask and the one most often skipped.
The floor
$4.99
The landed unit price at 18,670 units, ten times the break quantity, against a quoted rate of $4.20. The tooling share has fallen from $8.00 to $0.43, and the seventy-nine cents that still separates the two is that $0.43 plus six cents of freight, twenty-one cents of duty and nine cents of yield loss. Order a hundred thousand and it barely moves again. That is the floor, and the quotation never mentions it.