Business and Legal Math
Discover how numbers dictate business deals and legal disputes. Learn to calculate break-even points, model equity dilution, quantify contract damages, and calculate the expected value of legal risk.
Like Duolingo, but for Business and Legal Math. Tomo turns the whole topic into a game you play five minutes a day, until it actually sticks.
A short one: 12 levels across 2 sections, about 24 minutes end to end, roughly 5 days at five minutes a day. It moves through Deal and Ownership Numbers and Quantifying Liability and Legal Exposure. It starts from scratch.
Free forever · No credit card · iPhone & Android
Key ideas in Business and Legal Math
- Variable costs rise and fall with production, whereas fixed costs like rent stay the same regardless of unit sales
- Contribution margin per unit is calculated by subtracting variable costs (materials and packaging) from the selling price
- The remaining cash from each sale goes toward covering fixed overhead before generating profit
- The break-even point in units equals total fixed costs divided by the unit contribution margin
- Below the break-even volume the business operates at a net loss; above it, every unit sale adds pure profit
- At exactly the break-even point, total contribution margin equals total fixed costs, leaving zero net profit or loss
- Trimming fixed costs lowers the absolute survival threshold (break-even point) during lean times
- Shaving cents off variable costs compounds significantly when selling at large volume
- Converting fixed costs to variable costs reduces downside risk when sales are unpredictable
- Price cuts come entirely out of your profit margin rather than your production costs
- Dropping price from $100 to $90 on an item costing $80 cuts unit margin in half (from $20 to $10)
- When unit margin is halved, the business must sell twice as many units (a 100% volume increase) just to maintain the same total profit
- Gross margin measures revenue minus the direct costs of creating the product (cost of goods sold)
- Direct labor, raw materials, and packaging are direct production costs included in gross margin
- Operating expenses like administrative rent, marketing software, and legal fees are subtracted after gross profit, not before
- Issuing new shares lowers an existing owner's percentage share of the company, which is called dilution
You've tried the other tabs
Thirty open tabs. Four facts you actually kept.
You watched. You nodded. By Sunday it was gone.
One answer, then back to scrolling.
Eight weeks. You meant to finish. You didn't.
Tomo gives Business and Legal Math the Duolingo treatment: levels, streaks, and quick quizzes that test what you just learned. That game loop is what the tabs above never had, so it's the one you actually finish.
Here's what playing it feels like
A real question from this course. Take your best guess.
You sell a cup of lemonade for $3, and the lemons and sugar cost $1. What is your contribution margin per cup?
Get it right to open this lesson and 11 more in the app.
Where Business and Legal Math takes you
- 1
Deal and Ownership Numbers
- Unit Economics and Break-Even Targets
- Cap Tables, Equity, and Dilution
- 2
Quantifying Liability and Legal Exposure
- Calculating Contract Breach Damages
- Litigation Risk and Settlement Values
2 sections · 4 units · 12 levels. Built to play, not to enroll.
Tomo is in ChatGPT
Tomo is also a ChatGPT plugin: the same playable courses, built and played inside your chat.
Add Tomo to ChatGPT- What to ask
- “Make me a Tomo course on black holes.” “Turn this chat into a Tomo course.”
- What you get
- Quick questions with instant feedback, hearts and stars, ready to play in about a minute.
- Where it goes
- No sign-up to start. Connect your Tomo account and your streak carries on in the app.
You pick the voice
Business and Legal Math is taught in the Explain Like I'm 5 style: no big words. promise.. Want a different feel? In the app you can spin up the same topic in any of Tomo's teaching styles. Same facts, totally different vibe.
More Business on Tomo
The High-Leverage Parent
Build a scalable, high-margin business designed to thrive within the constraints of a one-income household and a newborn's schedule.
Negotiating Financial Deal Terms
Move beyond basic haggling by learning how financial terms shape the true value of any agreement. Discover how cash flow timing, risk sharing, and walkaway math give you leverage when sticker price alone stalls a conversation.
The Business Mindset
Learn to see the world through the lens of value exchange. This course helps you spot opportunities, calculate real costs, and test ideas without wasting time or money.
How Business Actually Works
Learn the foundational mechanics of starting and running a business without falling into classic first-timer traps. Discover how to test demand, talk to customers honestly, read your real numbers, and fix sales problems before they cost you.
Tech Sales and Capital Allocation
Convert high-performance B2B tech sales skills into maximum commissions and long-term compounding wealth. Master deal qualification, pipeline velocity, and enterprise commercial negotiation, then deploy variable earnings using essential investment formulas and asset valuation models.
Entrepreneurship: Build or Buy
Learn to launch a new venture from scratch or acquire a profitable existing business. This course covers everything from validating your first idea to mastering the financials and operations of a growing company.
Start Business and Legal Math today.
Download Tomo, search Business and Legal Math, and play your first lesson in under a minute.