Break-even analysis worksheet with answers

A product sells for €16 per unit. The variable cost is €12 per unit and the fixed costs are €4 800 per month. Find the monthly profit Π when 960 units are sold (a loss is negative).

A caterer expects to sell 400 meals per month. Each meal has a variable cost of €15 and the fixed costs are €1 200 per month. What is the lowest price p per meal at which the caterer breaks even?

A product can be made in two ways. Method A has fixed costs of €10 000 per year and a variable cost of €10 per unit. Method B, more automated, has fixed costs of €14 500 per year and a variable cost of €7 per unit. At what yearly volume Q do both methods cost the same?

A product can be made in two ways. Method A has fixed costs of €30 000 per year and a variable cost of €20 per unit. Method B, more automated, has fixed costs of €46 000 per year and a variable cost of €16 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €11 per unit, with a variable cost of €6 per unit and fixed costs of €6 000 per year. Budgeted sales are 1 920 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells two products. Product A sells for €21 with a variable cost of €15; product B sells for €33 with a variable cost of €25. They sell in a fixed mix of 2 units of A for every 3 of B. Fixed costs are €36 000 per month. Find the total number of units Q (A and B together) needed to break even.