increase the average gross profit to 50% while leaving the sales revenue and the fixed costs the same. She doesnt know if she can really do it, but wants to see what will happen to the numbers.           Break-Even Sales Revenue Forecast for Antoinettes Dress Shop     Revision 3:   Increase Gross Margin to 50%     Annual sales $400,000     Annual fixed costs 192,600     Gross profit 0.5     Break-even sales   ($192,600 divided by 0.5) 385,200     Sales over break-even   ($400,000 minus 385,200) $14,800     Profit ($14,800 x 0.5) $ 7,400             It seems that Antoinette needs to find some combination of higher sales estimates, lower fixed costs and higher gross profit margin that will improve profits so that she can make a living wage. But the really critical part is this: She must be absolutely sure that she can meet all the forecast changes she makes.     Antoinette was sure of her first forecasts; unfortunately, those forecasts produced a loss for the first year of business. Now, while she can manipulate the numbers to show a profit, the danger is that the numbers may not be achievable. She may be able to create a good-looking business plan but may be unable to meet those revised projections. Or, just as dangerous, she may become uneasy about the projects success. A lack of confidence may just be enough to take the edge off her drive and dedication and enough to make the project fail.     WarningMake sure that you have the same level of confidence in the revised forecast that you had in the first forecast. Obviously, you can fiddle with the numbers and show good profits, but the danger lies in making the goals impossible to reach. We all have a desire to make things work, and making the numbers work is very easy to do. Just remember that youll have to live with the numbers you write down for a very long time. Make sure theyre right. G. What You Have Accomplished