Break-even analysis worksheet with answers

A shop has fixed costs of €150 000 per year. Its variable costs are 40% of sales revenue. What sales revenue S does it need per year to break even?

A caterer expects to sell 1 250 meals per month. Each meal has a variable cost of €25 and the fixed costs are €5 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €10 per unit. Method B, more automated, has fixed costs of €31 000 per year and a variable cost of €6 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €23 with a variable cost of €8 per unit. Fixed costs are €22 500 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €4 500 after tax?

A product sells for €18 per unit, with a variable cost of €6 per unit and fixed costs of €48 000 per year. Budgeted sales are 5 200 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells 6 250 units per month at €10 each, with a variable cost of €4 per unit and fixed costs of €15 000 per month. The variable cost rises by €3 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?