# Price simulation examples [AX 2012]

Updated: May 21, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

The following examples use price simulation for quotation headers and single line items.

## Price simulation for quotation headers

You create a quotation that has the following lines:

10 units of item BR-12 (cost price per unit USD 9.52 and sales price per unit USD 15.32)

12 units of item BR-14 (cost price per unit USD 7.48 and sales price per unit USD 13.75)

The following table shows the quotation lines.

 Calculation Result Sales quantity 10 units + 12 units 22 units Sales value in USD (10*15.32) + (12*13.75) 318.20 Cost value in USD (10*9.52) + (12*7.48) 184.96 Contribution margin in USD 318.20 – 184.96 133.24 Contribution ratio (318.20 – (10*9.52)/318.20) * 100 41.87%

You run a price simulation and apply a 15 percent total discount for the whole quotation, or the quotation header. The following table shows the new totals of the quotation after the price simulation is run.

 Calculation Result Sales quantity 10 units + 12 units 22 units Old sales value in USD (10*15.32) + (12*13.75) 318.20 Old cost value in USD (10*9.52) + (12*7.48) 184.96 Old contribution margin in USD 318.20 – 184.96 133.24 Old contribution ratio (318.20 – (10*9.52)/318.20) * 100 41.87% Price simulation of 15% total discount in USD (15*318.2)/100 47.73 New sales value in USD 318.20 – 47.73 270.47 New contribution margin in USD 270.47 – 184.96 85.51 New contribution ratio ((270.47 – 184.96)/270.47) * 100 31.61%

## Price simulation for single line items

You create a quotation that has the following lines:

10 units of item BR-12 (cost price per unit USD 9.52 and sales price per unit USD 15.32)

12 units of item BR-14 (cost price per unit USD 7.48 and sales price per unit USD 13.75)

The following table shows the quotation lines.

 Result Calculation Sales quantity 10 units + 12 units 22 units Sales value in USD for BR-12 10*15.32 153.20 Sales value in USD for BR-14 12*13.75 165.00 Cost value in USD for BR-12 10*9.52 95.20 Cost value in USD for BR-14 12*7.48 89.76 Contribution margin in USD for BR-12 153.20 – 95.20 58.00 Contribution margin in USD for BR-14 165.00 – 89.76 75.24 Contribution ratio in USD for BR-12 ((153.20 – 95.20)/153.20) * 100 37.86 Contribution ratio in USD for BR-14 ((165.00 – 89.76)/165.00) * 100 45.60 Total sales value in USD (10*15.32) + (12*13.75) 318.20 Total cost value in USD (10*9.52) + (12*7.48) 184.96 Total contribution margin in USD 318.20 – 184.96 133.24 Total contribution ratio (318.20 – 184.96)/318.20) * 100 41.87%

You run a price simulation and apply a 10 percent total discount to the BR-12 units. The following table shows the new totals of the quotation after the price simulation is run for the single line item.

 Calculation Result Sales quantity 10 units + 12 units 22 units Old sales value in USD for BR-12 10*15.32 153.20 Price simulation of 10% discount for BR-12 (10*153.2)/100 15.32 New sales value in USD for BR-12 (10*15.32) – 15.32 137.88 Sales value in USD for BR-14 12*13.75 165.00 Cost value in USD for BR-12 10*9.52 95.20 Cost value in USD for BR-14 12*7.48 89.76 New contribution margin in USD for BR-12 137.88 – 95.20 42.68 Contribution margin in USD for BR-14 165.00 – 89.76 75.24 New contribution ratio in USD for BR-12 ((137.88 – 95.20)/137.88) * 100 30.95 Contribution ratio in USD for BR-14 ((165.00 – 89.76)/165.00) * 100 45.60 New total sales value in USD (10*15.32 – 15.32) + (12*13.75) 302.88 Total cost value in USD (10*9.52) + (12*7.48) 184.96 New total contribution margin in USD 302.88 – 184.96 117.92 New total contribution ratio ((302.88 – 184.96)/302.88) * 100 38.91%

The price simulation affects only the line to which it is applied, reducing the total for that line.