break-even-analysislisted

# Break-Even Analysis Determines the sales level where revenue exactly covers fixed plus variable costs — the baseline for pricing and target setting. ## Formulas (engines/break-even.js) * **Contribution Margin** = Price − Variable Cost per unit. * **Contribution Margin Ratio** = CM ÷ Price. * **Break-Even Units** = Fixed Costs ÷ CM. * **Break-Even Revenue** = Units × Price. * **Margin of Safety** = Actual Revenue − Break-Even Revenue. ## Multi-Product Note For multi-product cases, use the weighted-average contribution margin (weights = sales mix composition); the result is an approximation — valid only if the mix stays constant. ## Scope & Safety * **Use for**: minimum selling price, sales targets, evaluating fixed costs (rent, admin salaries). * **Do not use for**: multi-period profit analysis (assumes constant price & costs), or production decisions with limited capacity without constraints. * Main assumptions: constant price, linear variable costs, all units sold — state the assumptions when presenting. * The engine throws when price ≤ variable cost (non-positive contribution margin) — that signals an infeasible model, not an error. ## Hybrid Execution Model Pass `fixedCosts, pricePerUnit, variableCostPerUnit, actualRevenue` to `engines/break-even.js`; present the 5 outputs plus interpretation. Trust Envelope: risk LOW, `as_of` assumption date. ## Worked Example Input: fixed 20 million/month, price 25.000, variable cost 15.000, actual revenue 60 million. Output: CM