A product sells for €51 per unit. The variable cost is €45 per unit and the fixed costs are €30 000 per month. Find the monthly profit Π when 7 000 units are sold (a loss is negative).
Break-even analysis worksheet with answers
A company sells a product for €40 per unit. The variable cost is €25 per unit and fixed costs are €22 500 per month. How many units Q must it sell per month to break even?
A product sells for €11 with a variable cost of €8 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 €4 500 after tax?
A product sells for €8 per unit with a variable cost of €4 per unit. Fixed costs are €2 000 per month. How many units Q must be sold per month to make a profit of €2 000?
A product sells for €60 per unit, with a variable cost of €45 per unit and fixed costs of €7 500 per year. Budgeted sales are 750 units. Find the margin of safety MS as a percentage of budgeted sales.
A company sells 3 750 units per month at €8 each, with a variable cost of €6 per unit and fixed costs of €3 000 per month. The variable cost rises by €1 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. Π = 12000 €
- 2. Q = 1500 units
- 3. Q = 6875 units
- 4. Q = 1000 units
- 5. MS = 33.33 %
- 6. Q = 7500 units
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