1.Easy
A company sells a product for €32 per unit. The variable cost is €20 per unit and fixed costs are €48 000 per month. How many units Q must it sell per month to break even?
F = €48 000p = €32v = €20
Q = units
Break-even analysis worksheet with answers
2.Easy
A shop has fixed costs of €150 000 per year. Its variable costs are 50% of sales revenue. What sales revenue S does it need per year to break even?
F = €150 000variable costs = 50% · S
S = €
3.Medium
A product sells for €13 with a variable cost of €8 per unit. Fixed costs are €5 000 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €2 000 after tax?
p = €13v = €8F = €5 000T = 20%after-tax profit = €2 000
Q = units
4.Medium
A product sells for €19 per unit with a variable cost of €15 per unit. Fixed costs are €10 000 per month. How many units Q must be sold per month to make a profit of €6 000?
F = €10 000p = €19v = €15profit = €6 000
Q = units
5.Hard
A company sells 6 250 units at €65 each, with a variable cost of €45 per unit and fixed costs of €100 000. By what percentage %ΔΠ does operating profit change if sales volume rises by 12%?
Q = 6 250p = €65v = €45F = €100 000%ΔQ = +12%
%ΔΠ = %
6.Hard
A product sells for €32 per unit, with a variable cost of €30 per unit and fixed costs of €2 000 per year. Budgeted sales are 1 250 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €2 000p = €32v = €30budget = 1 250
MS = %
Answer key
- 1. Q = 4000 units
- 2. S = 300000 €
- 3. Q = 1500 units
- 4. Q = 4000 units
- 5. %ΔΠ = 60 %
- 6. MS = 20 %
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