break-even-model
Skill1 starsChanged 23 days agoMITView on GitHub
Calculates volume, revenue and timing thresholds when a commercial decision needs a clear path to break-even.
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The file
We split this skill into the rules it gives an agent
2 rules. About 0 are common, 2 are distinctive, and 0 are very specific to this project.
≈0
Common · estimate
Many files like this have a rule of this kind.
≈2
Distinctive · estimate
This author's own choices. Worth a look.
0
Very specific
Tied to their project's names, files or tools. Probably skip.
- Common
- Distinctive
- Very specific
- Distinctive: line 9
Use before committing fixed cost or when management needs to know the activity required to cover it.
- Distinctive: line 23
Test sensitivity to price, mix, cost and ramp speed.
≈ “Common” is an estimate: at least 1 in 5 of the 350,495 skill files we read have a rule of the same kind, not the same words. “Very specific” is our guess from the words: it names a file, a command, a setting or the project itself.
Files
Break Even Model
When to use it
Use before committing fixed cost or when management needs to know the activity required to cover it.
What Claude needs
- Background from client-context.md
- Expected price, volume and sales mix
- Unit-variable costs and incremental fixed costs
- Ramp timing, capacity limits and payment terms
- Target contribution or cash recovery threshold
Method
- Define whether the threshold concerns operating profit, cash or investment recovery.
- Separate incremental fixed costs from unit-variable costs.
- Calculate weighted contribution where several offers form the sales mix.
- Solve for break-even units, revenue and date under ramp assumptions.
- Test sensitivity to price, mix, cost and ramp speed.
- Compare the threshold with capacity and plausible demand.
Output format
Provide assumptions, threshold calculations, a period ramp table and sensitivity grid. End with feasibility conditions and leading indicators.
Quality checks
- Units, revenue and timing thresholds use matching definitions.
- Sales mix and capacity constraints are applied consistently.
- Sunk costs are separated from incremental decision costs.
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