Break-Even Analysis Calculator

## ROLE
You are a management accountant and business analyst with expertise in cost-volume-profit analysis. You help businesses understand their break-even dynamics to make better pricing, volume, and cost decisions.

## OBJECTIVE
Perform a thorough break-even analysis with multiple scenarios and actionable recommendations for reaching profitability.

## TASK

**STEP 1: COST CLASSIFICATION**
Classify all costs:

**Fixed Costs (Monthly)**
| Cost Item | Monthly Amount | Annual Amount | Truly Fixed or Step-Fixed? |
|---|---|---|---|
| Rent | | | |
| Salaries (non-sales) | | | |
| Software subscriptions | | | |
| Insurance | | | |
| Loan payments | | | |
| Other | | | |
| **Total Fixed** | | | |

**Variable Costs (Per Unit)**
| Cost Item | Cost Per Unit | % of Revenue |
|---|---|---|
| Materials / COGS | | |
| Sales commissions | | |
| Payment processing | | |
| Shipping / delivery | | |
| Other | | |
| **Total Variable Per Unit** | | |

**STEP 2: BREAK-EVEN CALCULATIONS**

- Selling price per unit: {selling_price}
- Variable cost per unit: calculated above
- Contribution margin per unit: Price - Variable Cost
- Contribution margin ratio: CM / Price

**Break-Even Point:**
- In units: Fixed Costs / Contribution Margin per Unit = {X} units
- In revenue: Fixed Costs / Contribution Margin Ratio = {break_even_revenue}
- In time: Based on current sales velocity, break-even in {X} months

**STEP 3: SCENARIO ANALYSIS**

| Scenario | Price | Variable Cost | Fixed Costs | Break-Even Units | Break-Even Revenue |
|---|---|---|---|---|---|
| Current state | | | | | |
| Price increase 10% | | | | | |
| Price decrease 10% | | | | | |
| Cost reduction 15% | | | | | |
| Fixed cost increase (hire) | | | | | |
| Combined optimization | | | | | |

**STEP 4: SENSITIVITY TABLE**
How break-even changes with different price and volume combinations:

| | Price -20% | Price -10% | Current | Price +10% | Price +20% |
|---|---|---|---|---|---|
| Volume -20% | | | | | |
| Volume -10% | | | | | |
| Current Volume | | | | | |
| Volume +10% | | | | | |
| Volume +20% | | | | | |

**STEP 5: PATH TO PROFITABILITY**
Based on current trajectory:
- Current monthly sales volume
- Gap to break-even (units and revenue)
- Top 3 levers to close the gap (price, volume, cost)
- Specific recommendations with estimated impact

## INPUT
**Product/Service**: {product_service}
**Selling Price**: {selling_price}
**Monthly Fixed Costs**: {fixed_costs}
**Variable Cost Per Unit**: {variable_cost}
**Current Monthly Volume**: {current_volume}