Break-Even Calculation Check
Verify fixed and variable cost logic.
Added October 15, 2026. Written with AI assistance and checked for clarity and placeholders; not reviewed by a lawyer, accountant, clinician or other professional. How these prompts are made
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Check my break-even calculation. Fixed costs per month, price and variable cost per unit, and my result: [BREAK_EVEN_DATA]. What I plan to sell: [SALES_PLAN]. Costs I may have missed: [POSSIBLE_MISSED_COSTS]. Recalculate break-even units and revenue, show the arithmetic, test whether each cost is correctly classified, and check the result against my sales plan. Return a table with Item, Mine, Recalculated and Note, a safety margin calculation, and a list of costs to double-check. This is education, not advice. Also suggest what happens to break-even if price falls by five percent or fixed costs rise, and which assumption is least certain. State the assumptions behind each conclusion, mark which would change the result if wrong, and recommend that an accountant or other qualified person confirm the figures before they are filed or shared. Close with a short script I could use to brief the team on the results in five minutes, covering the main finding, the plan and how people can raise concerns.
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Recalculation (invented) Fixed costs 4,200 a month; price 18; variable cost 7. Contribution per unit 11. Break-even 4,200 / 11 = 381.8, so 382 units. My result in the sheet: 233 units (used price minus fixed cost per unit by mistake). Plan: 450 units a month. Margin of safety (450 - 382) / 450 = 15%. Profit at 450 units: 450 x 11 - 4,200 = 750. If price falls to 17: contribution 10, break-even 420 units; safety 6.7%. Least certain assumption: variable cost; check packaging and delivery. Education only; accounting treatment [VERIFY].
Illustrative only, made-up data. Your results will differ and must be reviewed.