Compute · Assess & Decide · Analysis & Finance
Break-even sales change for a price change
You get the minimum percent (and unit) sales-volume change at which a proposed price change leaves total profit contribution unchanged.
You receive: A pure function that, given a price change and the baseline contribution margin, returns the break-even percent sales change, the break-even unit change, the resulting new contribution margin, and whether the result is economically defined.
Part of Choose Business Model
What you receive
The shape of your delivered file. Your result is generated for your inputs.
Your deliverable is a computed result carrying these fields:
- Defined
- New contribution margin
- Pct be
- Unit be
Opens soon
STUD opens runs for everyone soon, on every play at once.
Scope of the check
What's verified: STUD verifies the ARITHMETIC of the break-even formula only: that the function reproduces the book's price-volume trade-off math on held-out inputs and that the declared algebraic invariants hold. STUD does NOT verify that the supplied price change, contribution margin, or baseline units are real or correctly measured; does NOT estimate or predict the actual sales response (the book is explicit that whether realized volume will clear the break-even is a separate qualitative judgment for a sales or product manager); does NOT verify that the market will accept the new price; and does NOT assert anything about fixed-cost recovery or overall product profitability (this is an INCREMENTAL break-even on contribution, not a total break-even). The dollar-sales conversion is reported only when the buyer supplies the percent price change; STUD does not infer it.
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