How Overhead Per Piece Works

Art Price Lab divides your monthly overhead by your expected number of pieces sold per month to get the overhead contribution for each piece.

Formula: Monthly Overhead ÷ Estimated Pieces Per Month = Overhead Per Piece

If your overhead is $500/month and you typically sell 10 pieces, that is $50 overhead per piece added to your time plus materials cost.

If you sell fewer pieces in a given month, the overhead per piece goes up. Each sale has to carry more of the fixed cost. If you sell more, it goes down. That is not a flaw in the model. It is accurate: in any fixed-cost business, volume affects how much overhead each unit carries.

Set your expected pieces per month in Settings. Be honest about what you actually sell on average, not what you hope to sell. The goal is a realistic number that makes your overhead contribution per piece reflect your actual practice.