CH11 MODE B Target CM Rate Worksheet

Answer in the Worksheet Writer and save as Markdown

Related Chapter: CH11 — MODE B Target Price Reverse Calculation Basis: docs/features/mode_b_target_price/SPEC.md (Pricing Harness Internal Specification, Category B)

This worksheet organizes the inputs needed before running MODE B (target price reverse calculation) and helps review the calculation results. It uses only the inputs (Client Input) and outputs (Output metric) defined in SPEC.md — do not arbitrarily add items not found there.

1. Setting the Target

Item	Value	Notes
Target Contribution Margin Rate (t)	___ %	Be sure to record the basis below
Source of the target rate	□ Internal standard □ Investor requirement □ Industry benchmark □ Other ( )
Detailed explanation of the source		MODE B does not validate whether this number is reasonable — this is the consultant’s judgment call

2. Component Identification

Item	Value
component_id
Product/service name

Note: target_contribution_margin_rate is currently a single global value applied to the entire Client Input (per-component target rates are not supported).

3. Cost/Fee Structure Input (C, b, a)

Fixed-amount costs (C = direct cost + amount-valued portion of variable cost)

item_id	Item name	Amount	Currency	applies_to_component

An item with applies_to_component = "shared" whose allocation rule (allocation_rule) is not yet determined is not calculated as 0 — instead, every related metric is marked UNKNOWN.

Rate-based costs — net sales basis (b)

item_id	Item name	Rate

Rate-based costs — gross payment basis (a)

item_id	Item name	Rate

4. Tax and Display-Price Basis

Item	Value
VAT rate (v)	___ % (if unknown, mark “undetermined” — do not fill in 0)
Does the display price include VAT (price_includes_vat)	□ Included (true) □ Excluded (false) □ Undetermined

Whether the VAT rate is needed differs by metric. If even one gross-payment-based cost (a) exists, the VAT rate is required regardless of the display-price basis.

5. Discount Policy (Optional)

Item	Value
Discount rate (discount_rate)	___ % (if none, mark “none” — do not leave blank)

6. Recording the MODE B Results

Metric	Value	Status (OK / UNKNOWN / ERROR)
denominator (denominator D)
required_net_sales_ex_vat (target net sales, N)
required_gross_payment_incl_vat (target gross payment, G)
required_selling_price (target actual selling price)
required_list_price (target list price)
expected_contribution_margin (expected Contribution Margin)
expected_contribution_margin_rate (expected Contribution Margin Rate, self-check — must match t)

7. Result Interpretation Checklist

• Is denominator an ERROR (≤ 0)? → If so, this is a definitive diagnosis that “no price can achieve the target under this cost/fee structure.” Do not recalculate — reexamine the structure itself (cost/target rate/channel structure/product composition).
• Is there an UNKNOWN? → This is not a calculation failure but undetermined data. Check the table above to see which input is missing.
• Does the target list price differ greatly from the market price? → Refer to CH11 §7 Practical Checkpoints, and reexamine from a customer-value (KM046)/positioning (KM047) perspective.
• Does expected_contribution_margin_rate exactly match the input t (self-check)?