Break-even analysis worksheet with answers

A caterer expects to sell 400 meals per month. Each meal has a variable cost of €20 and the fixed costs are €4 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A company sells a product for €33 per unit. The variable cost is €25 per unit and fixed costs are €40 000 per month. How many units Q must it sell per month to break even?

A company sells 1 800 units at €18 each. The variable cost is €12 per unit and fixed costs are €7 200. Find the degree of operating leverage DOL at this sales level.

A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €10 per unit. Method B, more automated, has fixed costs of €37 000 per year and a variable cost of €4 per unit. At what yearly volume Q do both methods cost the same?

A company sells two products. Product A sells for €16 with a variable cost of €12; product B sells for €40 with a variable cost of €30. They sell in a fixed mix of 3 units of A for every 2 of B. Fixed costs are €9 600 per month. Find the total number of units Q (A and B together) needed to break even.

A product sells for €42 per unit, with a variable cost of €30 per unit and fixed costs of €12 000 per year. Budgeted sales are 1 800 units. Find the margin of safety MS as a percentage of budgeted sales.