Break-even analysis worksheet with answers

A product sells for €30 per unit. The variable cost is €15 per unit and the fixed costs are €30 000 per month. Find the monthly profit Π when 4 000 units are sold (a loss is negative).

A caterer expects to sell 5 000 meals per month. Each meal has a variable cost of €3 and the fixed costs are €25 000 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 €25 000 per year and a variable cost of €18 per unit. Method B, more automated, has fixed costs of €34 000 per year and a variable cost of €12 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 €8 per unit. Method B, more automated, has fixed costs of €40 000 per year and a variable cost of €3 per unit. At what yearly volume Q do both methods cost the same?

A company sells two products. Product A sells for €18 with a variable cost of €12; product B sells for €40 with a variable cost of €20. They sell in a fixed mix of 2 units of A for every 3 of B. Fixed costs are €43 200 per month. Find the total number of units Q (A and B together) needed to break even.

A company sells 750 units per month at €57 each, with a variable cost of €45 per unit and fixed costs of €6 000 per month. The variable cost rises by €4 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?