Assess students' ability to apply break-even and contribution margin analysis to set pricing and production levels for a small business. Tasks include calculating contribution margin per unit and ratio, determining break-even units and revenue, computing required sales for a target profit, evaluating margin of safety, and performing sensitivity analysis for changes in price, fixed costs, or variable costs. Include short numerical problems and one scenario-based decision where students recommend a price and production level given cost structure, demand limits, and a desired profit.