Break-even analysis worksheet with answers

Free printable Break-even analysis worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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1.Easy
Q€revenuetotal costfixed costQ = ?

A company sells a product for €45 per unit. The variable cost is €30 per unit and fixed costs are €30 000 per month. How many units Q must it sell per month to break even?

F = €30 000p = €45v = €30
Q = units
2.Easy
Q€revenue (p = ?)total costfixed cost800

A caterer expects to sell 800 meals per month. Each meal has a variable cost of €15 and the fixed costs are €8 000 per month. What is the lowest price p per meal at which the caterer breaks even?

Q = 800v = €15F = €8 000
p = €
3.Medium
Q€revenuetotal costfixed costQ = ?

A product sells for €26 with a variable cost of €6 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?

p = €26v = €6F = €20 000T = 20%after-tax profit = €10 000
Q = units
4.Medium
Q€revenuetotal costfixed cost1920

A company sells 1 920 units at €32 each. The variable cost is €12 per unit and fixed costs are €24 000. Find the degree of operating leverage DOL at this sales level.

Q = 1 920p = €32v = €12F = €24 000
DOL =
5.Hard
F = €38 000, Q = ?sales mix2 × Ap = €20v = €123 × Bp = €40v = €20

A company sells two products. Product A sells for €20 with a variable cost of €12; product B sells for €40 with a variable cost of €20. They sell in a fixed mix of 2 units of A for every 3 of B. Fixed costs are €38 000 per month. Find the total number of units Q (A and B together) needed to break even.

pA = €20, vA = €12pB = €40, vB = €20A : B = 2 : 3F = €38 000
Q = units
6.Hard
F = €28 800, Q = ?sales mix2 × Ap = €21v = €153 × Bp = €23v = €15

A company sells two products. Product A sells for €21 with a variable cost of €15; product B sells for €23 with a variable cost of €15. They sell in a fixed mix of 2 units of A for every 3 of B. Fixed costs are €28 800 per month. Find the total number of units Q (A and B together) needed to break even.

pA = €21, vA = €15pB = €23, vB = €15A : B = 2 : 3F = €28 800
Q = units

Answer key

  1. 1. Q = 2000 units
  2. 2. p = 25 €
  3. 3. Q = 1625 units
  4. 4. DOL = 2.667
  5. 5. Q = 2500 units
  6. 6. Q = 4000 units

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