A company sells a product for €29 per unit. The variable cost is €25 per unit and fixed costs are €4 800 per month. How many units Q must it sell per month to break even?
Break-even analysis worksheet with answers
A product sells for €65 per unit. The variable cost is €45 per unit and the fixed costs are €100 000 per month. Find the monthly profit Π when 10 000 units are sold (a loss is negative).
A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €31 000 per year and a variable cost of €8 per unit. At what yearly volume Q do both methods cost the same?
A product sells for €8 per unit with a variable cost of €6 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?
A product sells for €9 per unit, with a variable cost of €6 per unit and fixed costs of €6 000 per year. Budgeted sales are 2 300 units. Find the margin of safety MS as a percentage of budgeted sales.
A company sells 12 500 units per month at €24 each, with a variable cost of €4 per unit and fixed costs of €100 000 per month. The variable cost rises by €4 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Answer key
- 1. Q = 1200 units
- 2. Π = 100000 €
- 3. Q = 1500 units
- 4. Q = 3000 units
- 5. MS = 13.04 %
- 6. Q = 15625 units
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