1.Easy
A product sells for €14 per unit. The variable cost is €12 per unit and the fixed costs are €8 000 per month. Find the monthly profit Π when 3 200 units are sold (a loss is negative).
p = €14v = €12F = €8 000Q = 3 200
Π = €
Break-even analysis worksheet with answers
2.Easy
A caterer expects to sell 800 meals per month. Each meal has a variable cost of €25 and the fixed costs are €4 000 per month. What is the lowest price p per meal at which the caterer breaks even?
Q = 800v = €25F = €4 000
p = €
3.Medium
A product sells for €35 per unit with a variable cost of €30 per unit. Fixed costs are €6 000 per month. How many units Q must be sold per month to make a profit of €6 000?
F = €6 000p = €35v = €30profit = €6 000
Q = units
4.Medium
A product sells for €38 per unit with a variable cost of €18 per unit. Fixed costs are €24 000 per month. How many units Q must be sold per month to make a profit of €2 000?
F = €24 000p = €38v = €18profit = €2 000
Q = units
5.Hard
A company sells 10 000 units at €33 each, with a variable cost of €18 per unit and fixed costs of €60 000. By what percentage %ΔΠ does operating profit change if sales volume falls by 10%?
Q = 10 000p = €33v = €18F = €60 000%ΔQ = −10%
%ΔΠ = %
6.Hard
A company sells 1 000 units at €18 each, with a variable cost of €12 per unit and fixed costs of €4 800. By what percentage %ΔΠ does operating profit change if sales volume rises by 20%?
Q = 1 000p = €18v = €12F = €4 800%ΔQ = +20%
%ΔΠ = %
Answer key
- 1. Π = −1600 €
- 2. p = 30 €
- 3. Q = 2400 units
- 4. Q = 1300 units
- 5. %ΔΠ = −16.67 %
- 6. %ΔΠ = 100 %
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