1.Easy
A caterer expects to sell 5 000 meals per month. Each meal has a variable cost of €6 and the fixed costs are €25 000 per month. What is the lowest price p per meal at which the caterer breaks even?
Q = 5 000v = €6F = €25 000
p = €
Break-even analysis worksheet with answers
2.Easy
A company sells a product for €11 per unit. The variable cost is €8 per unit and fixed costs are €15 000 per month. How many units Q must it sell per month to break even?
F = €15 000p = €11v = €8
Q = units
3.Medium
A product sells for €34 per unit with a variable cost of €30 per unit. Fixed costs are €16 000 per month. How many units Q must be sold per month to make a profit of €6 000?
F = €16 000p = €34v = €30profit = €6 000
Q = units
4.Medium
A product sells for €8 per unit with a variable cost of €4 per unit. Fixed costs are €20 000 per month. How many units Q must be sold per month to make a profit of €2 000?
F = €20 000p = €8v = €4profit = €2 000
Q = units
5.Hard
A product sells for €17 per unit, with a variable cost of €12 per unit and fixed costs of €10 000 per year. Budgeted sales are 3 200 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €10 000p = €17v = €12budget = 3 200
MS = %
6.Hard
A company sells 3 000 units per month at €40 each, with a variable cost of €25 per unit and fixed costs of €18 000 per month. The variable cost rises by €3 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 3 000p = €40v = €25 → €28F = €18 000
Q = units
Answer key
- 1. p = 11 €
- 2. Q = 5000 units
- 3. Q = 5500 units
- 4. Q = 5500 units
- 5. MS = 37.5 %
- 6. Q = 3750 units
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