 Hi, this is Dr. Don. I want to spend a few minutes with you talking about break-even analysis using our Excel calculator. Break-even analysis is used primarily to determine the minimum output that must be exceeded for a business to begin making a profit, and it's based on categorizing the production cost as either variable costs that change when the volume of the production changes, and fixed costs which are not related to the additional production and when the changes in the production. The break-even point represents the sales amount, and we can talk about it either in quantity, units, or revenue from sales that is required to cover the total cost to the company both fixed and variable. And the formula is really pretty simple. Break-even units in this case is just the fixed cost, the total fixed cost, divided by the contribution margin, and the contribution margin is just the revenue from each unit minus the cost of each unit, so it's that margin that's left over that contributes toward paying off the fixed cost. To see this graphically, we've got our scatter chart with quantity on the x-axis and cost and revenue on the y-axis. Our fixed costs are just horizontal line. No matter the quantity we make or sell, the fixed cost doesn't change, but the variable cost does increase the more we make the higher the variable cost becomes, and that total cost is the sum of the fixed cost and the variable cost. Now revenue starts when we begin to sell things at zero and increases linearly. For every item we sell, we get more revenue. As long as our revenue, the total revenue, is above the cost line, the total cost line we're making a profit. But when the cost line is above the revenue line, we have a loss. And what we're trying to find is that breakeven point. When we switch over from losing money to making money, that's the point where the total revenue is equal to the total cost. That's our breakeven point, and from there we can get the breakeven units and the breakeven revenue. So let's give an example. We've got a medical practice manager here, and her principals want to add on a new prostrate procedure called resum, because they think it will benefit the patients if they do it in the office as opposed to traipsing down to the hospital. So the office manager does research, and she finds out the cost associated with getting set up, buying the equipment they need, getting the training, renovating the office, and other fixed costs, one-time costs. She also finds out the variable cost. What kind of supplies are they going to consume for each procedure, and how much labor from their technicians are they going to need? Finally she finds out what she can charge for this procedure, and because most of the patients are on Medicare, the limit in this case is the Medicare allowance of 1847. So let's run this using the XL calculator. So here is the XL calculator you can download, and it comes with some dummy information already in there, and you can see we've got a unit price, and we've got some dummy unit variable cost, and then we've got dummy fixed cost that you can then input here. The calculator will automatically begin calculating as soon as you put your data in the blue sales, the yellow sales are where the answers come, and then the graph will be generated for you. You can see it shows the horizontal line, which is the fixed cost again. The green dotted line is our total cost line, and then we've got our total sales, our total revenue, and the blue dash line here. We're going to put in our data, I'm just going to copy and paste this in, delete out the information we don't need, paste that in, and this is 500, and then the procedure gets paid, 1847, enter. We have our calculations, and it gives us the contribution margin, 270. It gives us our total fix, total variable, then our break-even units of 29, and our break-even sales of 53,000, and of course that shows zero profit. Now our chart is basic there, but because we've got some small number of units, we're going to change the units increments down to 25 and see if that looks a little better, and I'm going to make it a little bit smaller yet. Let's just go with 5 and see how that looks. There we go. We can kind of zoom in on the break-even chart, and you can see our break-even units there, those orange square, 29, and again, down to 29 here, and over to the 53,000. This is how the calculator works, it's very easy to use. I hope this helps.