Break-even analysis worksheet with answers

A caterer expects to sell 2 500 meals per month. Each meal has a variable cost of €12 and the fixed costs are €5 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A company sells a product for €22 per unit. The variable cost is €20 per unit and fixed costs are €2 000 per month. How many units Q must it sell per month to break even?

A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €33 000 per year and a variable cost of €8 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €23 per unit with a variable cost of €18 per unit. Fixed costs are €10 000 per month. How many units Q must be sold per month to make a profit of €5 000?

A product sells for €8 per unit, with a variable cost of €6 per unit and fixed costs of €3 000 per year. Budgeted sales are 1 720 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €40 per unit, with a variable cost of €25 per unit and fixed costs of €22 500 per year. Budgeted sales are 1 950 units. Find the margin of safety MS as a percentage of budgeted sales.