Five cost assumptions drive the decision.
Order revenue$60.00
Product cost$18.00
Shipping$6.00
Fulfillment$3.00
Fees + expected returns$3.54
Formula
Result
pre-ad contribution = 60.00 − 18.00 − 6.00 − 3.00 − 2.10 − 1.44 = 29.46
break-even ROAS = 60.00 ÷ 29.46 = 2.04×
target ROAS = 60.00 ÷ (29.46 − 10.00) = 3.08×
The campaign has two different guardrails.
Decision
Do not scale this order at a 2.5× ROAS when the goal is $10 profit per acquired order.
At 2.5×, ad cost is $24.00. That is below break-even, but above the $19.46 target CPA. Improve price, shipping, product cost, returns or conversion economics before treating 2.5× as a profitable target.
Illustrative planning example only. It excludes overhead, tax, cash timing, LTV, incrementality and attribution error. Replace every assumption with your own current data.