1.Easy
A product sells for €12 per unit. The variable cost is €8 per unit and the fixed costs are €8 000 per month. Find the monthly profit Π when 1 600 units are sold (a loss is negative).
p = €12v = €8F = €8 000Q = 1 600
Π = €
Break-even analysis worksheet with answers
2.Easy
A company sells a product for €28 per unit. The variable cost is €20 per unit and fixed costs are €4 000 per month. How many units Q must it sell per month to break even?
F = €4 000p = €28v = €20
Q = units
3.Medium
A product sells for €11 per unit with a variable cost of €6 per unit. Fixed costs are €25 000 per month. How many units Q must be sold per month to make a profit of €6 000?
F = €25 000p = €11v = €6profit = €6 000
Q = units
4.Medium
A product sells for €17 per unit with a variable cost of €15 per unit. Fixed costs are €10 000 per month. How many units Q must be sold per month to make a profit of €2 000?
F = €10 000p = €17v = €15profit = €2 000
Q = units
5.Hard
A company sells 3 000 units at €26 each, with a variable cost of €6 per unit and fixed costs of €30 000. By what percentage %ΔΠ does operating profit change if sales volume rises by 10%?
Q = 3 000p = €26v = €6F = €30 000%ΔQ = +10%
%ΔΠ = %
6.Hard
A product sells for €30 per unit, with a variable cost of €18 per unit and fixed costs of €9 600 per year. Budgeted sales are 960 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €9 600p = €30v = €18budget = 960
MS = %
Answer key
- 1. Π = −1600 €
- 2. Q = 500 units
- 3. Q = 6200 units
- 4. Q = 6000 units
- 5. %ΔΠ = 20 %
- 6. MS = 16.67 %
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