1.Easy
A company sells a product for €24 per unit. The variable cost is €12 per unit and fixed costs are €60 000 per month. How many units Q must it sell per month to break even?
F = €60 000p = €24v = €12
Q = units
Break-even analysis worksheet with answers
2.Easy
A shop has fixed costs of €20 000 per year. Its variable costs are 70% of sales revenue. What sales revenue S does it need per year to break even?
F = €20 000variable costs = 70% · S
S = €
3.Medium
A product sells for €40 with a variable cost of €25 per unit. Fixed costs are €60 000 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €12 000 after tax?
p = €40v = €25F = €60 000T = 20%after-tax profit = €12 000
Q = units
4.Medium
A product sells for €60 per unit with a variable cost of €45 per unit. Fixed costs are €12 000 per month. How many units Q must be sold per month to make a profit of €12 000?
F = €12 000p = €60v = €45profit = €12 000
Q = units
5.Hard
A company sells 750 units per month at €20 each, with a variable cost of €8 per unit and fixed costs of €6 000 per month. The variable cost rises by €2 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 750p = €20v = €8 → €10F = €6 000
Q = units
6.Hard
A product sells for €21 per unit, with a variable cost of €15 per unit and fixed costs of €12 000 per year. Budgeted sales are 2 500 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €12 000p = €21v = €15budget = 2 500
MS = %
Answer key
- 1. Q = 5000 units
- 2. S = 66667 €
- 3. Q = 5000 units
- 4. Q = 1600 units
- 5. Q = 900 units
- 6. MS = 20 %
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