Break-even analysis worksheet with answers

A shop has fixed costs of €60 000 per year. Its variable costs are 75% of sales revenue. What sales revenue S does it need per year to break even?

A company sells a product for €30 per unit. The variable cost is €18 per unit and fixed costs are €12 000 per month. How many units Q must it sell per month to break even?

A product can be made in two ways. Method A has fixed costs of €10 000 per year and a variable cost of €18 per unit. Method B, more automated, has fixed costs of €20 000 per year and a variable cost of €13 per unit. At what yearly volume Q do both methods cost the same?

A company sells 2 500 units at €60 each. The variable cost is €45 per unit and fixed costs are €15 000. Find the degree of operating leverage DOL at this sales level.

A product sells for €27 per unit, with a variable cost of €25 per unit and fixed costs of €8 000 per year. Budgeted sales are 4 600 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €32 per unit, with a variable cost of €30 per unit and fixed costs of €1 600 per year. Budgeted sales are 1 120 units. Find the margin of safety MS as a percentage of budgeted sales.