Break-even analysis worksheet with answers

A company sells a product for €40 per unit. The variable cost is €20 per unit and fixed costs are €24 000 per month. How many units Q must it sell per month to break even?

A company sells a product for €17 per unit. The variable cost is €12 per unit and fixed costs are €20 000 per month. How many units Q must it sell per month to break even?

A company sells 1 250 units at €17 each. The variable cost is €12 per unit and fixed costs are €5 000. Find the degree of operating leverage DOL at this sales level.

A product can be made in two ways. Method A has fixed costs of €30 000 per year and a variable cost of €18 per unit. Method B, more automated, has fixed costs of €33 200 per year and a variable cost of €14 per unit. At what yearly volume Q do both methods cost the same?

A company sells 2 500 units per month at €19 each, with a variable cost of €15 per unit and fixed costs of €8 000 per month. The variable cost rises by €2 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?

A product sells for €57 per unit, with a variable cost of €45 per unit and fixed costs of €48 000 per year. Budgeted sales are 7 200 units. Find the margin of safety MS as a percentage of budgeted sales.