A company sells a product for €26 per unit. The variable cost is €6 per unit and fixed costs are €40 000 per month. How many units Q must it sell per month to break even?
Break-even analysis worksheet with answers
A product sells for €13 per unit. The variable cost is €8 per unit and the fixed costs are €5 000 per month. Find the monthly profit Π when 1 500 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 €18 per unit. Method B, more automated, has fixed costs of €37 500 per year and a variable cost of €13 per unit. At what yearly volume Q do both methods cost the same?
A product can be made in two ways. Method A has fixed costs of €20 000 per year and a variable cost of €18 per unit. Method B, more automated, has fixed costs of €32 500 per year and a variable cost of €13 per unit. At what yearly volume Q do both methods cost the same?
A company sells 1 000 units per month at €24 each, with a variable cost of €12 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?
A company sells two products. Product A sells for €19 with a variable cost of €15; product B sells for €18 with a variable cost of €10. They sell in a fixed mix of 2 units of A for every 1 of B. Fixed costs are €12 800 per month. Find the total number of units Q (A and B together) needed to break even.
Answer key
- 1. Q = 2000 units
- 2. Π = 2500 €
- 3. Q = 1500 units
- 4. Q = 2500 units
- 5. Q = 1200 units
- 6. Q = 2400 units
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