Break-even analysis worksheet with answers

A caterer expects to sell 4 000 meals per month. Each meal has a variable cost of €3 and the fixed costs are €8 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A shop has fixed costs of €20 000 per year. Its variable costs are 45% of sales revenue. What sales revenue S does it need per year to break even?

A product can be made in two ways. Method A has fixed costs of €20 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €40 000 per year and a variable cost of €7 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €28 per unit with a variable cost of €8 per unit. Fixed costs are €24 000 per month. How many units Q must be sold per month to make a profit of €20 000?

A product sells for €30 per unit, with a variable cost of €18 per unit and fixed costs of €60 000 per year. Budgeted sales are 6 250 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €24 per unit, with a variable cost of €20 per unit and fixed costs of €6 000 per year. Budgeted sales are 1 880 units. Find the margin of safety MS as a percentage of budgeted sales.