Break-even analysis worksheet with answers

A shop has fixed costs of €60 000 per year. Its variable costs are 40% of sales revenue. What sales revenue S does it need per year to break even?

A caterer expects to sell 2 000 meals per month. Each meal has a variable cost of €3 and the fixed costs are €10 000 per month. What is the lowest price p per meal at which the caterer breaks even?

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 €40 000 per year and a variable cost of €3 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €50 per unit with a variable cost of €45 per unit. Fixed costs are €12 500 per month. How many units Q must be sold per month to make a profit of €2 000?

A product sells for €16 per unit, with a variable cost of €12 per unit and fixed costs of €4 800 per year. Budgeted sales are 1 680 units. Find the margin of safety MS as a percentage of budgeted sales.

A company sells two products. Product A sells for €16 with a variable cost of €12; product B sells for €23 with a variable cost of €15. They sell in a fixed mix of 5 units of A for every 2 of B. Fixed costs are €18 000 per month. Find the total number of units Q (A and B together) needed to break even.