1.Easy
A product sells for €8 per unit. The variable cost is €4 per unit and the fixed costs are €4 800 per month. Find the monthly profit Π when 2 400 units are sold (a loss is negative).
p = €8v = €4F = €4 800Q = 2 400
Π = €
Break-even analysis worksheet with answers
2.Easy
A product sells for €32 per unit. The variable cost is €20 per unit and the fixed costs are €14 400 per month. Find the monthly profit Π when 1 800 units are sold (a loss is negative).
p = €32v = €20F = €14 400Q = 1 800
Π = €
3.Medium
A product sells for €57 with a variable cost of €45 per unit. Fixed costs are €30 000 per month and profit is taxed at 25%. How many units Q must be sold per month to earn €9 000 after tax?
p = €57v = €45F = €30 000T = 25%after-tax profit = €9 000
Q = units
4.Medium
A company sells 2 400 units at €42 each. The variable cost is €30 per unit and fixed costs are €9 600. Find the degree of operating leverage DOL at this sales level.
Q = 2 400p = €42v = €30F = €9 600
DOL =
5.Hard
A product sells for €12 per unit, with a variable cost of €8 per unit and fixed costs of €4 000 per year. Budgeted sales are 1 150 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €4 000p = €12v = €8budget = 1 150
MS = %
6.Hard
A product sells for €16 per unit, with a variable cost of €4 per unit and fixed costs of €48 000 per year. Budgeted sales are 6 000 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €48 000p = €16v = €4budget = 6 000
MS = %
Answer key
- 1. Π = 4800 €
- 2. Π = 7200 €
- 3. Q = 3500 units
- 4. DOL = 1.5
- 5. MS = 13.04 %
- 6. MS = 33.33 %
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