A caterer expects to sell 5 000 meals per month. Each meal has a variable cost of €4 and the fixed costs are €40 000 per month. What is the lowest price p per meal at which the caterer breaks even?
Break-even analysis worksheet with answers
A company sells a product for €22 per unit. The variable cost is €12 per unit and fixed costs are €5 000 per month. How many units Q must it sell per month to break even?
A product sells for €57 per unit with a variable cost of €45 per unit. Fixed costs are €60 000 per month. How many units Q must be sold per month to make a profit of €12 000?
A product sells for €45 per unit with a variable cost of €30 per unit. Fixed costs are €15 000 per month. How many units Q must be sold per month to make a profit of €6 000?
A company sells 2 500 units per month at €7 each, with a variable cost of €4 per unit and fixed costs of €3 000 per month. The variable cost rises by €1 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
A company sells 630 units at €17 each, with a variable cost of €12 per unit and fixed costs of €2 500. By what percentage %ΔΠ does operating profit change if sales volume rises by 12%?
Answer key
- 1. p = 12 €
- 2. Q = 500 units
- 3. Q = 6000 units
- 4. Q = 1400 units
- 5. Q = 3750 units
- 6. %ΔΠ = 58.15 %
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