Break-even analysis worksheet with answers

A caterer expects to sell 2 000 meals per month. Each meal has a variable cost of €6 and the fixed costs are €12 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product sells for €22 per unit. The variable cost is €12 per unit and the fixed costs are €25 000 per month. Find the monthly profit Π when 3 500 units are sold (a loss is negative).

A product can be made in two ways. Method A has fixed costs of €30 000 per year and a variable cost of €15 per unit. Method B, more automated, has fixed costs of €32 000 per year and a variable cost of €13 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €30 per unit with a variable cost of €20 per unit. Fixed costs are €20 000 per month. How many units Q must be sold per month to make a profit of €6 000?

A product sells for €27 per unit, with a variable cost of €15 per unit and fixed costs of €9 600 per year. Budgeted sales are 960 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells two products. Product A sells for €16 with a variable cost of €12; product B sells for €38 with a variable cost of €30. They sell in a fixed mix of 4 units of A for every 1 of B. Fixed costs are €4 800 per month. Find the total number of units Q (A and B together) needed to break even.