Break-even analysis worksheet with answers

A shop has fixed costs of €50 000 per year. Its variable costs are 40% of sales revenue. What sales revenue S does it need per year to break even?

A caterer expects to sell 2 500 meals per month. Each meal has a variable cost of €3 and the fixed costs are €10 000 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 €30 000 per year and a variable cost of €10 per unit. Method B, more automated, has fixed costs of €42 000 per year and a variable cost of €7 per unit. At what yearly volume Q do both methods cost the same?

A company sells 5 000 units at €7 each. The variable cost is €4 per unit and fixed costs are €7 500. Find the degree of operating leverage DOL at this sales level.

A product sells for €28 per unit, with a variable cost of €18 per unit and fixed costs of €50 000 per year. Budgeted sales are 8 000 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells 630 units at €10 each, with a variable cost of €8 per unit and fixed costs of €1 000. By what percentage %ΔΠ does operating profit change if sales volume rises by 10%?