Break-even analysis under normally distributed input variables

In traditional break-even analysis we assume that all the input variables (variable costs per unit, total fixed costs and price of the product) are known with certainty. However, these variables may be random and thus not known in advance. For instance, a firm can be price-taker - the price of the product is random variable determined by market; variable costs per unit depend on the price of raw materials, which again cannot be known in advance with certainty. In our paper, we discuss the break-even analysis introducing randomness. We focus on two input variables - the price of the product, which influences the revenues, and the variable costs per unit, which influence the costs. In the paper, we assume that these random inputs follow normal distribution.