1.Easy
A company sells a product for €55 per unit. The variable cost is €45 per unit and fixed costs are €20 000 per month. How many units Q must it sell per month to break even?
F = €20 000p = €55v = €45
Q = units
Break-even analysis worksheet with answers
2.Easy
A product sells for €10 per unit. The variable cost is €6 per unit and the fixed costs are €6 000 per month. Find the monthly profit Π when 2 100 units are sold (a loss is negative).
p = €10v = €6F = €6 000Q = 2 100
Π = €
3.Medium
A product sells for €32 per unit with a variable cost of €20 per unit. Fixed costs are €14 400 per month. How many units Q must be sold per month to make a profit of €6 000?
F = €14 400p = €32v = €20profit = €6 000
Q = units
4.Medium
A product sells for €35 per unit with a variable cost of €25 per unit. Fixed costs are €12 000 per month. How many units Q must be sold per month to make a profit of €12 000?
F = €12 000p = €35v = €25profit = €12 000
Q = units
5.Hard
A product sells for €25 per unit, with a variable cost of €20 per unit and fixed costs of €4 000 per year. Budgeted sales are 1 120 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €4 000p = €25v = €20budget = 1 120
MS = %
6.Hard
A company sells 3 000 units per month at €16 each, with a variable cost of €8 per unit and fixed costs of €16 000 per month. The variable cost rises by €4 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 3 000p = €16v = €8 → €12F = €16 000
Q = units
Answer key
- 1. Q = 2000 units
- 2. Π = 2400 €
- 3. Q = 1700 units
- 4. Q = 2400 units
- 5. MS = 28.57 %
- 6. Q = 6000 units
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