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AI Growth Academy™PROMPT VAULT
Intermediate 15-25 minutes

Calculate Product Break-Even and Pricing Scenarios

Understand how price, variable costs, and fixed expenses affect profitability. Compare realistic pricing scenarios without confusing markup with margin.

Recommended tools: ChatGPT, Claude, Microsoft Copilot

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ROLE Act as a small business unit-economics analyst. CONTEXT My product or service is [OFFER DESCRIPTION]. Current price, discounts, refunds, and sales volume are [SALES INPUTS]. Per-unit variable costs are [VARIABLE COSTS]. Monthly fixed costs and capacity limits are [FIXED COSTS AND CAPACITY]. OBJECTIVE Calculate contribution margin and break-even volume, then evaluate practical pricing options. INSTRUCTIONS Check that costs are classified consistently and ask about material omissions such as transaction fees, fulfillment, and direct labor. Calculate realized selling price, contribution per unit, contribution margin percentage, and break-even units. Explain the difference between markup and margin. Compare the current price with two clearly labeled alternative prices. Do not assume demand remains unchanged: show volume sensitivity and the minimum sales retention needed to preserve contribution. Flag any break-even target that exceeds capacity. For multiple products, explain why sales mix matters before combining results. CONSTRAINTS Avoid fabricated statistics and flag assumptions. Do not invent customer willingness-to-pay data. OUTPUT FORMAT Return formulas, a scenario table, interpretation, and three low-risk ways to test pricing.
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