A caterer expects to sell 1 250 meals per month. Each meal has a variable cost of €6 and the fixed costs are €10 000 per month. What is the lowest price p per meal at which the caterer breaks even?
Break-even analysis worksheet with answers
A company sells a product for €27 per unit. The variable cost is €15 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 €20 000 per year and a variable cost of €18 per unit. Method B, more automated, has fixed costs of €27 500 per year and a variable cost of €13 per unit. At what yearly volume Q do both methods cost the same?
A product sells for €30 per unit with a variable cost of €20 per unit. Fixed costs are €8 000 per month. How many units Q must be sold per month to make a profit of €2 000?
A company sells two products. Product A sells for €11 with a variable cost of €8; product B sells for €42 with a variable cost of €30. They sell in a fixed mix of 4 units of A for every 1 of B. Fixed costs are €4 800 per month. Find the total number of units Q (A and B together) needed to break even.
A company sells 2 400 units per month at €12 each, with a variable cost of €4 per unit and fixed costs of €9 600 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?
Answer key
- 1. p = 14 €
- 2. Q = 1000 units
- 3. Q = 1500 units
- 4. Q = 1000 units
- 5. Q = 1000 units
- 6. Q = 3200 units
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