1.Easy
A caterer expects to sell 800 meals per month. Each meal has a variable cost of €25 and the fixed costs are €4 800 per month. What is the lowest price p per meal at which the caterer breaks even?
Q = 800v = €25F = €4 800
p = €
Break-even analysis worksheet with answers
2.Easy
A product sells for €11 per unit. The variable cost is €8 per unit and the fixed costs are €3 600 per month. Find the monthly profit Π when 960 units are sold (a loss is negative).
p = €11v = €8F = €3 600Q = 960
Π = €
3.Medium
A company sells 1 280 units at €12 each. The variable cost is €8 per unit and fixed costs are €3 200. Find the degree of operating leverage DOL at this sales level.
Q = 1 280p = €12v = €8F = €3 200
DOL =
4.Medium
A product sells for €16 per unit with a variable cost of €8 per unit. Fixed costs are €4 000 per month. How many units Q must be sold per month to make a profit of €2 000?
F = €4 000p = €16v = €8profit = €2 000
Q = units
5.Hard
A company sells 1 000 units at €34 each, with a variable cost of €30 per unit and fixed costs of €3 200. By what percentage %ΔΠ does operating profit change if sales volume rises by 10%?
Q = 1 000p = €34v = €30F = €3 200%ΔQ = +10%
%ΔΠ = %
6.Hard
A company sells 10 000 units at €42 each, with a variable cost of €30 per unit and fixed costs of €60 000. By what percentage %ΔΠ does operating profit change if sales volume rises by 20%?
Q = 10 000p = €42v = €30F = €60 000%ΔQ = +20%
%ΔΠ = %
Answer key
- 1. p = 31 €
- 2. Π = −720 €
- 3. DOL = 2.667
- 4. Q = 750 units
- 5. %ΔΠ = 50 %
- 6. %ΔΠ = 40 %
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