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Unit Economics Model
Chicken Deboning
USDA-inspected facility · Contract processing · 15,000 raw lbs/wk · 68.0% yield
Alternative wins by $6,838/mo over processing
Break-even 13,857 lbs/wk · Net margin 18.9% · Includes $1,000/mo health insurance
Monthly Profit
$413
After rent
Annual Profit
$5k
vs Alternative
-$6,837/mo
vs $75k/yr alternative + ins
Net Margin
18.9%
profit as % of revenue
Lbs / truck6,000
Get weight tickets
Trucks / week2.5
Yield %68.0%
Finished lbs out of raw lbs
Top customer %40.0%
Share of volume from largest customer
→ 15,000 raw lbs · 10,200 finished · 500 boxes / week
Unit Economics
Cost / lb
$0.357
Net Rev / lb
$0.440
after yield & trim salvage
Spread / lb
$0.083
Volume Sensitivity
+445% profit
from a 10% volume increase (1.94x op. leverage)
Fixed-Coverage Vol.
12,702
Raw lbs/wk to cover fixed
Sensitivity Matrix — Monthly Profit
Volume (lbs/wk) × Rate ($/lb) · Click any cell to update
| Vol \ Rate | $0.45 | $0.50 | $0.55 | $0.60 | $0.70 |
|---|---|---|---|---|---|
| 8k | -$12k | -$11k | -$10k | -$9k | -$7k |
| 12k | -$9k | -$7k | -$6k | -$4k | -$483 |
| 15k | -$6k | -$4k | -$2k | $413 | $5k |
| 23k | -$351 | $3k | $6k | $10k | $16k |
| 30k | $6k | $10k | $14k | $19k | $28k |
■ Profitable■ Unprofitable■ Current
Downside Stress Test
| Scenario | Monthly Impact | Annual Impact | Survives? |
|---|---|---|---|
| Lose 1 truck (6 mo) | -$7,339 | -$44k | No |
| Rate compression −$0.10/lb | -$4,417 | -$53k | No |
| Labor cost +30% | -$5,261 | -$63k | No |
| Lose top customer | -$7,339 | -$88k | No |
| USDA shutdown (2 wk) | -$6,955 | -$7k (one-time) | No |
| Perfect storm | -$14,023 | -$168k | No |
Scenarios use current inputs as baseline. Perfect storm combines truck loss + rate compression + labor spike.
Weekly P&L
Base processing$6,120
Trim salvage$480
Total Revenue$6,600
Direct labor-$1,750
Supervisors-$1,250
Payroll burden-$1,050
Utilities-$900
Misc-$400
Rent (weekly)-$1,155
Total Costs-$6,505
Weekly Profit$95
Health insurance ($1,000/mo) deducted in Monthly Breakdown only.
Monthly Breakdown
Gross Revenue$28,578
Total Costs-$23,166
Rent-$5,000
Monthly Profit$413
Health Insurance-$1,000
Net vs Alternative (/mo)-$6,837
Cost Structure
48.5% Fixed
51.5% Variable
Fixed — $2,945/wk
Supervisors$1,250
Rent (weekly)$1,155
Utilities (60% fixed)$540
Variable — $3,123/wk
Piece-rate labor$1,750
Burden on labor$613
Utilities (40% variable)$360
Misc / packaging$400
5-Year Wealth Accumulation
50% savings on biz profit · 30% savings on tech salary · 7% annual return
| Year | Processing | Alternative | Delta |
|---|---|---|---|
| Yr 0 | $0 | $0 | +$0 |
| Yr 1 | $0 | $23k | -$23k |
| Yr 2 | $0 | $48k | -$48k |
| Yr 3 | $0 | $75k | -$75k |
| Yr 4 | $0 | $104k | -$104k |
| Yr 5 | $0 | $134k | -$134k |
Not modeled: seasonality, equipment depreciation, startup ramp (months 1–2 reduced throughput), USDA inspection dependency, sequence-of-returns risk, and the non-financial cost of running a 6am meat processing operation.