EASEBRAIN ACADEMY — OFFLINE MISSION PACK Make the numbers work https://easebrain.live/curriculum/make-the-numbers-work CHALLENGE Build a simple financial model for your project. Compare prices and costs, calculate break-even and test what happens when one assumption changes. LEARNING OBJECTIVES Calculate contribution and whole-unit break-even, including transaction costs. Explain cash timing and identify a financial scam warning sign. LEARN & APPLY 1. Separate the costs Variable costs change with each item or service delivered. Fixed costs do not change directly with each unit in the model’s range. Label estimates and record the date of any quote. Practice: List fixed and variable costs for your offer. 2. Calculate contribution Contribution per unit equals selling price minus variable cost. For a fictional item priced at KES 250 with KES 150 variable cost, contribution is KES 100. KES 3,000 fixed costs require 30 units to break even. Practice: Calculate contribution and break-even for your own assumptions. 3. Check cash and uncertainty Cash may leave before revenue arrives. A profitable-looking plan can still run out of cash. Test lower sales, higher costs and a different price before making a commitment. Practice: Create three scenarios and recommend proceed, revise or stop. WORKED EXAMPLE KES 250 price minus KES 150 unit cost gives KES 100 contribution. KES 3,000 fixed costs require 30 units. Add KES 20 delivery/transaction cost: contribution becomes KES 80 and break-even is 37.5, rounded up to 38 whole units. Sales are not the same as cash received. YOUR PRACTICE QUESTION What happens if variable cost equals or exceeds the selling price? Write your answer before reading the explanation below. EXPLANATION There is no positive unit contribution to cover fixed costs in this model. Selling more does not fix it. Revise price, costs or the offer, and examine cash timing before any commitment. STRETCH Build a fictional weekly cash table. Identify urgency, advance fees and requests for a PIN in a fictional offer. No real purchases, borrowing or transfers are required. PRACTICAL: Can the club cover its costs? Suggested time: 45–60 minutes Illustrated crew scenario (fictional learning example) Thirty sales at KES 250 should cover our KES 3,000 setup. Materials cost KES 150 and delivery KES 20 per unit. Let’s include both. PREDICT: Does revenue tell you whether the project makes a surplus? STARTER: Fictional prices: selling price KES 250/unit, materials KES 150/unit, delivery KES 20/unit, fixed cost KES 3,000. Compare 30 and 38 sales. Assume all units made are sold for this first model. 1. Classify costs List fixed and per-unit costs, then compute contribution per unit = price − materials − delivery. Keep units and assumptions visible. 2. Test the volume Use the budget lab. Calculate revenue, total cost and surplus for 30 and 38 units. Find the first whole-unit break-even volume; test the unit just below it. 3. Check cash timing Create a two-row timeline: costs paid before sales, then cash received. Explain how a project can eventually break even but still need cash upfront. Add one plausible cost you initially missed. COMPARE AFTER TRYING: Contribution is KES 80. At 30 sales the result is 30×80−3,000=−KES 600. At 38 it is KES 40. Break-even is ceiling(3,000/80)=38 units. If contribution is zero or negative and fixed costs are positive, selling more cannot cover those costs under this model. SELF-CHECK 30 units loses KES 600; 38 yields KES 40. I test a changed price or cost, not just the default. My cash timeline distinguishes payment timing from profit. TRANSFER: Only 80% of produced units sell. Rebuild the model: production costs apply to all units made, revenue only to those sold. WORKBOOK TEMPLATE Price | Materials | Delivery | Fixed cost | Units sold Revenue | Total cost | Surplus Break-even and assumptions: Cash before sales | Cash after sales Sensitivity test: EVIDENCE CRITERIA Costs and assumptions labelled Correct contribution and break-even logic Cash timing and a sensitivity scenario explained Deliverable: Cost model, three scenarios and a decision memo SESSION PLAN (adapt with your facilitator) Recall & plan: 30 minutes Model & discuss: 45 minutes Guided practice: 75 minutes Build & test: 120 minutes Feedback & revise: 60 minutes Reflect & next step: 30 minutes RESOURCES Central Bank of Kenya: fraud safety — https://www.centralbank.go.ke/fraud-safety/ EntreComp entrepreneurship framework — https://joint-research-centre.ec.europa.eu/scientific-activities/key-competences-lifelong-learning/entrecomp-entrepreneurship-competence-framework_en AI DISCLOSURE TEMPLATE Tool/version; date; task; information shared; claims checked and sources; what I changed; what I can explain myself. No AI or equipment purchase is required. Keep personal information out of project evidence.