1.Easy
A shop has fixed costs of €60 000 per year. Its variable costs are 40% of sales revenue. What sales revenue S does it need per year to break even?
F = €60 000variable costs = 40% · S
S = €
Break-even analysis worksheet with answers
2.Easy
A company sells a product for €33 per unit. The variable cost is €25 per unit and fixed costs are €8 000 per month. How many units Q must it sell per month to break even?
F = €8 000p = €33v = €25
Q = units
3.Medium
A product sells for €38 per unit with a variable cost of €18 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 = €38v = €18profit = €2 000
Q = units
4.Medium
A product sells for €35 per unit with a variable cost of €25 per unit. Fixed costs are €50 000 per month. How many units Q must be sold per month to make a profit of €5 000?
F = €50 000p = €35v = €25profit = €5 000
Q = units
5.Hard
A product sells for €50 per unit, with a variable cost of €45 per unit and fixed costs of €12 500 per year. Budgeted sales are 4 500 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €12 500p = €50v = €45budget = 4 500
MS = %
6.Hard
A company sells 10 000 units per month at €33 each, with a variable cost of €18 per unit and fixed costs of €60 000 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?
Q = 10 000p = €33v = €18 → €21F = €60 000
Q = units
Answer key
- 1. S = 100000 €
- 2. Q = 1000 units
- 3. Q = 600 units
- 4. Q = 5500 units
- 5. MS = 44.44 %
- 6. Q = 12500 units
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