1.Easy
A caterer expects to sell 4 000 meals per month. Each meal has a variable cost of €25 and the fixed costs are €16 000 per month. What is the lowest price p per meal at which the caterer breaks even?
Q = 4 000v = €25F = €16 000
p = €
Break-even analysis worksheet with answers
2.Easy
A company sells a product for €8 per unit. The variable cost is €4 per unit and fixed costs are €4 800 per month. How many units Q must it sell per month to break even?
F = €4 800p = €8v = €4
Q = units
3.Medium
A product sells for €45 per unit with a variable cost of €25 per unit. Fixed costs are €100 000 per month. How many units Q must be sold per month to make a profit of €12 000?
F = €100 000p = €45v = €25profit = €12 000
Q = units
4.Medium
A product sells for €10 per unit with a variable cost of €8 per unit. Fixed costs are €4 000 per month. How many units Q must be sold per month to make a profit of €2 000?
F = €4 000p = €10v = €8profit = €2 000
Q = units
5.Hard
A company sells 750 units at €45 each, with a variable cost of €30 per unit and fixed costs of €7 500. By what percentage %ΔΠ does operating profit change if sales volume falls by 20%?
Q = 750p = €45v = €30F = €7 500%ΔQ = −20%
%ΔΠ = %
6.Hard
A product sells for €65 per unit, with a variable cost of €45 per unit and fixed costs of €50 000 per year. Budgeted sales are 3 500 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €50 000p = €65v = €45budget = 3 500
MS = %
Answer key
- 1. p = 29 €
- 2. Q = 1200 units
- 3. Q = 5600 units
- 4. Q = 3000 units
- 5. %ΔΠ = −60 %
- 6. MS = 28.57 %
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