A product sells for €42 per unit. The variable cost is €30 per unit and the fixed costs are €12 000 per month. Find the monthly profit Π when 1 500 units are sold (a loss is negative).
Break-even analysis worksheet with answers
A company sells a product for €28 per unit. The variable cost is €20 per unit and fixed costs are €16 000 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 €15 000 per year and a variable cost of €8 per unit. Method B, more automated, has fixed costs of €27 500 per year and a variable cost of €3 per unit. At what yearly volume Q do both methods cost the same?
A product sells for €21 per unit with a variable cost of €15 per unit. Fixed costs are €30 000 per month. How many units Q must be sold per month to make a profit of €6 000?
A company sells two products. Product A sells for €15 with a variable cost of €10; product B sells for €18 with a variable cost of €10. They sell in a fixed mix of 2 units of A for every 3 of B. Fixed costs are €13 600 per month. Find the total number of units Q (A and B together) needed to break even.
A company sells 1 880 units per month at €45 each, with a variable cost of €30 per unit and fixed costs of €22 500 per month. The variable cost rises by €5 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Answer key
- 1. Π = 6000 €
- 2. Q = 2000 units
- 3. Q = 2500 units
- 4. Q = 6000 units
- 5. Q = 2000 units
- 6. Q = 2820 units
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