Break-even analysis worksheet with answers

A shop has fixed costs of €36 000 per year. Its variable costs are 65% of sales revenue. What sales revenue S does it need per year to break even?

A product sells for €22 per unit. The variable cost is €18 per unit and the fixed costs are €4 000 per month. Find the monthly profit Π when 750 units are sold (a loss is negative).

A product can be made in two ways. Method A has fixed costs of €10 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €15 000 per year and a variable cost of €10 per unit. At what yearly volume Q do both methods cost the same?

A product can be made in two ways. Method A has fixed costs of €20 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €23 000 per year and a variable cost of €10 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €51 per unit, with a variable cost of €45 per unit and fixed costs of €12 000 per year. Budgeted sales are 3 200 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells two products. Product A sells for €11 with a variable cost of €8; product B sells for €40 with a variable cost of €25. They sell in a fixed mix of 3 units of A for every 1 of B. Fixed costs are €4 800 per month. Find the total number of units Q (A and B together) needed to break even.