Break-even analysis worksheet with answers

A shop has fixed costs of €36 000 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 5 000 meals per month. Each meal has a variable cost of €20 and the fixed costs are €15 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product sells for €28 per unit with a variable cost of €20 per unit. Fixed costs are €12 000 per month. How many units Q must be sold per month to make a profit of €6 000?

A product can be made in two ways. Method A has fixed costs of €20 000 per year and a variable cost of €20 per unit. Method B, more automated, has fixed costs of €22 400 per year and a variable cost of €17 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €35 per unit, with a variable cost of €15 per unit and fixed costs of €20 000 per year. Budgeted sales are 1 150 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €22 per unit, with a variable cost of €12 per unit and fixed costs of €40 000 per year. Budgeted sales are 5 000 units. Find the margin of safety MS as a percentage of budgeted sales.