Your question is Communicating Bad News and P&L. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
Have you ever had to make business recommendations to someone who had much more experience than you at running their business? How would you communicate bad news to this person? Can you walk me through a P&L statement?