1.Easy
A product sells for €21 per unit. The variable cost is €15 per unit and the fixed costs are €30 000 per month. Find the monthly profit Π when 3 750 units are sold (a loss is negative).
p = €21v = €15F = €30 000Q = 3 750
Π = €
Break-even analysis worksheet with answers
2.Easy
A shop has fixed costs of €75 000 per year. Its variable costs are 75% of sales revenue. What sales revenue S does it need per year to break even?
F = €75 000variable costs = 75% · S
S = €
3.Medium
A company sells 15 000 units at €20 each. The variable cost is €15 per unit and fixed costs are €25 000. Find the degree of operating leverage DOL at this sales level.
Q = 15 000p = €20v = €15F = €25 000
DOL =
4.Medium
A company sells 3 000 units at €15 each. The variable cost is €12 per unit and fixed costs are €3 000. Find the degree of operating leverage DOL at this sales level.
Q = 3 000p = €15v = €12F = €3 000
DOL =
5.Hard
A company sells 3 750 units at €18 each, with a variable cost of €6 per unit and fixed costs of €18 000. By what percentage %ΔΠ does operating profit change if sales volume rises by 15%?
Q = 3 750p = €18v = €6F = €18 000%ΔQ = +15%
%ΔΠ = %
6.Hard
A product sells for €18 per unit, with a variable cost of €15 per unit and fixed costs of €1 500 per year. Budgeted sales are 600 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €1 500p = €18v = €15budget = 600
MS = %
Answer key
- 1. Π = −7500 €
- 2. S = 300000 €
- 3. DOL = 1.5
- 4. DOL = 1.5
- 5. %ΔΠ = 25 %
- 6. MS = 16.67 %
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