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Strategy / Free mini-course
Separate sales from contribution, find a simple break-even point and test a discount against capacity. Use transparent arithmetic to improve a business decision.
Free · ₹0 · about 25 minutes · self-paced reading + practice
By Dr. Swapnil Sahoo · for adult learners · no account required
01 / Read and try
Define a unit and a time period before calculating. Revenue per unit is the selling price in this simplified exercise. Subtract costs that change with that unit to obtain contribution per unit. Contribution then helps cover the period’s fixed costs; it is not automatically profit. Include time and delivery work rather than treating founder effort as free. These educational figures exclude tax, financing and other unlisted costs, so they are a bounded operating calculation rather than a full set of accounts or a pricing recommendation.
02 / Read and try
For one product with constant price and variable cost within the relevant capacity, break-even units equal fixed costs divided by contribution per unit. Round up when the result is not a whole sale. If contribution is zero or negative, selling more cannot cover positive fixed costs under that model. Next compare the required sales with realistic demand and delivery capacity. A mathematically correct break-even figure is not a forecast that those sales will occur. Fixed costs can also step up when capacity expands.
03 / Read and try
A discount changes contribution before it changes demand. Work out how much extra volume would be needed and whether the team could serve it. In this case, cutting price by ₹30 halves contribution from ₹60 to ₹30. Even reaching the existing 300-lunch capacity would not cover the stated fixed costs at that price. A discount might still have a bounded purpose, such as a limited acquisition experiment, but its cost and evidence target must be explicit. Higher sales volume alone does not settle the decision.
04 / Make a decision
Put the idea to work · guided practice
A public demonstration using original hypothetical material. Explore choices and compare your reasoning. This activity does not submit work, count towards assessed progress or issue a certificate.
Original hypothetical exercise: Tiffin Trail charges ₹150 per lunch, with ₹90 variable cost and ₹12,000 monthly fixed costs. Capacity is 300 lunches monthly. A proposed ₹120 price is expected to attract more orders, but no demand test has been run. All figures are invented and exclude tax, financing and other unlisted costs. Use the same cost assumptions for both prices.
Evaluate the discount and choose a next step using the stated numbers. Try a different choice to see how the reasoning changes. Feedback is written instructional guidance, not AI-generated advice.
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This is one defensible response. Your recommendation may differ if you explain the assumptions and evidence.
Keep the momentum
Choose a customer promise, identify the request you will decline and connect the choice to daily activities. Practise a decision under a real capacity constraint.
Try the next course →Explore the proposed full programme, its capstone and assessment rubric. Dates and enrolment details are separate from this free course.
Explore the programme →This course provides self-practice and written guidance. It does not submit work, certify completion or promise a professional outcome.