Break-even analysis worksheet with answers

A caterer expects to sell 2 500 meals per month. Each meal has a variable cost of €3 and the fixed costs are €20 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product sells for €30 per unit. The variable cost is €18 per unit and the fixed costs are €30 000 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 €25 000 per year and a variable cost of €25 per unit. Method B, more automated, has fixed costs of €30 000 per year and a variable cost of €23 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €50 per unit with a variable cost of €45 per unit. Fixed costs are €20 000 per month. How many units Q must be sold per month to make a profit of €2 000?

A product sells for €28 per unit, with a variable cost of €20 per unit and fixed costs of €6 400 per year. Budgeted sales are 1 000 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €57 per unit, with a variable cost of €45 per unit and fixed costs of €60 000 per year. Budgeted sales are 8 000 units. Find the margin of safety MS as a percentage of budgeted sales.