A company sells a product for €34 per unit. The variable cost is €30 per unit and fixed costs are €16 000 per month. How many units Q must it sell per month to break even?
Break-even analysis worksheet with answers
A caterer expects to sell 2 000 meals per month. Each meal has a variable cost of €20 and the fixed costs are €16 000 per month. What is the lowest price p per meal at which the caterer breaks even?
A product sells for €50 per unit with a variable cost of €30 per unit. Fixed costs are €50 000 per month. How many units Q must be sold per month to make a profit of €5 000?
A product sells for €42 per unit with a variable cost of €30 per unit. Fixed costs are €12 000 per month. How many units Q must be sold per month to make a profit of €12 000?
A company sells 3 000 units per month at €30 each, with a variable cost of €20 per unit and fixed costs of €20 000 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 7 500 units at €37 each, with a variable cost of €25 per unit and fixed costs of €60 000. By what percentage %ΔΠ does operating profit change if sales volume rises by 12%?
Answer key
- 1. Q = 4000 units
- 2. p = 28 €
- 3. Q = 2750 units
- 4. Q = 2000 units
- 5. Q = 3750 units
- 6. %ΔΠ = 36 %
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