Break-even analysis worksheet with answers

A product sells for €20 per unit. The variable cost is €12 per unit and the fixed costs are €6 400 per month. Find the monthly profit Π when 1 000 units are sold (a loss is negative).

A shop has fixed costs of €90 000 per year. Its variable costs are 50% of sales revenue. What sales revenue S does it need per year to break even?

A product sells for €35 with a variable cost of €25 per unit. Fixed costs are €20 000 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €10 000 after tax?

A product can be made in two ways. Method A has fixed costs of €30 000 per year and a variable cost of €25 per unit. Method B, more automated, has fixed costs of €34 500 per year and a variable cost of €22 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €18 per unit, with a variable cost of €6 per unit and fixed costs of €6 000 per year. Budgeted sales are 650 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells two products. Product A sells for €18 with a variable cost of €15; product B sells for €42 with a variable cost of €30. They sell in a fixed mix of 3 units of A for every 1 of B. Fixed costs are €8 400 per month. Find the total number of units Q (A and B together) needed to break even.