1. Giulia is clearly intrigued by the options that have just opened to her. If she were to accept the customer's contract offer and take over the forge, how would her business model change? (Pay particular attention to the revenue stream and cost structure dimensions).

2. Using Stanley's Kowalchek's operating cost as you best guess data about the cost of operating the forge, perform a simple breakeven analysis for each of the two basic business model configurations - the current outsourcing arrangement and operating the forge.

3. Is the analysis above informative? How can Giulia use or extend the break-even calculation to add more information to her understanding of the situation?