Break-even analysis worksheet with answers

A product sells for €10 per unit. The variable cost is €8 per unit and the fixed costs are €8 000 per month. Find the monthly profit Π when 3 200 units are sold (a loss is negative).

A product sells for €19 per unit. The variable cost is €15 per unit and the fixed costs are €16 000 per month. Find the monthly profit Π when 6 000 units are sold (a loss is negative).

A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €33 000 per year and a variable cost of €8 per unit. At what yearly volume Q do both methods cost the same?

A product can be made in two ways. Method A has fixed costs of €20 000 per year and a variable cost of €8 per unit. Method B, more automated, has fixed costs of €26 000 per year and a variable cost of €5 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €22 per unit, with a variable cost of €18 per unit and fixed costs of €2 000 per year. Budgeted sales are 700 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €18 per unit, with a variable cost of €8 per unit and fixed costs of €8 000 per year. Budgeted sales are 1 000 units. Find the margin of safety MS as a percentage of budgeted sales.