The first tool I used to predict is called Sensitivity Analysis. Sensitivity Analysis involves [explain] The Breakeven point shows how much of a product needs to be sold before we can start making a profit. The lower the Breakeven point, the faster we start making a profit. Fixed expenses are incurred regardless of how many units are produced. An example of a fixed expense would be [give an example]. Variable expenses increase as the amount of the product being made increases. An example of a variable expense would be [give one]. The Sale Price per unit is set by the manufacturer according to supply and demand. The three things that we can do to reach break even faster is [list the three changes you made on the spreadsheet]. An income statement shows [your answer]. A balance sheet, on the other hand, shows [your answer]. I believe that they call it a balance sheet because [look at the totals on Row 15]