Break-even analysis worksheet with answers

A product sells for €40 per unit. The variable cost is €30 per unit and the fixed costs are €10 000 per month. Find the monthly profit Π when 1 250 units are sold (a loss is negative).

A caterer expects to sell 4 000 meals per month. Each meal has a variable cost of €25 and the fixed costs are €10 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product sells for €35 per unit with a variable cost of €25 per unit. Fixed costs are €25 000 per month. How many units Q must be sold per month to make a profit of €10 000?

A product can be made in two ways. Method A has fixed costs of €10 000 per year and a variable cost of €25 per unit. Method B, more automated, has fixed costs of €22 500 per year and a variable cost of €20 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 €10; product B sells for €38 with a variable cost of €30. They sell in a fixed mix of 3 units of A for every 1 of B. Fixed costs are €7 800 per month. Find the total number of units Q (A and B together) needed to break even.

A product sells for €47 per unit, with a variable cost of €45 per unit and fixed costs of €2 400 per year. Budgeted sales are 1 680 units. Find the margin of safety MS as a percentage of budgeted sales.