A caterer expects to sell 1 000 meals per month. Each meal has a variable cost of €12 and the fixed costs are €2 000 per month. What is the lowest price p per meal at which the caterer breaks even?
Break-even analysis worksheet with answers
A product sells for €30 per unit. The variable cost is €20 per unit and the fixed costs are €8 000 per month. Find the monthly profit Π when 480 units are sold (a loss is negative).
A product sells for €14 per unit with a variable cost of €4 per unit. Fixed costs are €25 000 per month. How many units Q must be sold per month to make a profit of €6 000?
A product sells for €28 with a variable cost of €25 per unit. Fixed costs are €15 000 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €3 000 after tax?
A product sells for €24 per unit, with a variable cost of €12 per unit and fixed costs of €12 000 per year. Budgeted sales are 1 300 units. Find the margin of safety MS as a percentage of budgeted sales.
A company sells 1 200 units at €12 each, with a variable cost of €8 per unit and fixed costs of €3 200. By what percentage %ΔΠ does operating profit change if sales volume rises by 8%?
Answer key
- 1. p = 14 €
- 2. Π = −3200 €
- 3. Q = 3100 units
- 4. Q = 6250 units
- 5. MS = 23.08 %
- 6. %ΔΠ = 24 %
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