Break-even analysis worksheet with answers

A shop has fixed costs of €75 000 per year. Its variable costs are 65% of sales revenue. What sales revenue S does it need per year to break even?

A caterer expects to sell 2 500 meals per month. Each meal has a variable cost of €15 and the fixed costs are €15 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A company sells 6 250 units at €22 each. The variable cost is €12 per unit and fixed costs are €25 000. 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 €25 000 per year and a variable cost of €18 per unit. Method B, more automated, has fixed costs of €29 000 per year and a variable cost of €16 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €45 per unit, with a variable cost of €30 per unit and fixed costs of €15 000 per year. Budgeted sales are 1 500 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 €6 per unit and fixed costs of €60 000 per year. Budgeted sales are 9 000 units. Find the margin of safety MS as a percentage of budgeted sales.