STAGE 1: Classify costs
Concept: Cost behavior depends on the relevant range and time horizon.
Task: Classify paper, printing, rent and setup costs with stated assumptions.
Acceptance: Identify any cost whose classification needs clarification.

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STAGE 2: Calculate contribution
Concept: Contribution per unit is price minus variable cost per unit.
Task: Build a transparent model using the supplied values.
Acceptance: Keep per-unit and total values separate.

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STAGE 3: Test break-even
Concept: Break-even is a model result under specific assumptions.
Task: Calculate break-even units and test a price reduction.
Acceptance: Round units appropriately and discuss capacity constraints.

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STAGE 4: Prepare the working paper
Concept: A supervisor needs traceable calculations and boundaries.
Task: Write the calculation steps, checks, assumptions and unresolved questions.
Acceptance: Do not present the case as statutory accounts or professional advice.

My assumptions:

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