1.Easy
A company sells a product for €30 per unit. The variable cost is €25 per unit and fixed costs are €10 000 per month. How many units Q must it sell per month to break even?
F = €10 000p = €30v = €25
Q = units
Break-even analysis worksheet with answers
2.Easy
A shop has fixed costs of €120 000 per year. Its variable costs are 60% of sales revenue. What sales revenue S does it need per year to break even?
F = €120 000variable costs = 60% · S
S = €
3.Medium
A product sells for €50 per unit with a variable cost of €30 per unit. Fixed costs are €100 000 per month. How many units Q must be sold per month to make a profit of €5 000?
F = €100 000p = €50v = €30profit = €5 000
Q = units
4.Medium
A product sells for €65 per unit with a variable cost of €45 per unit. Fixed costs are €20 000 per month. How many units Q must be sold per month to make a profit of €2 000?
F = €20 000p = €65v = €45profit = €2 000
Q = units
5.Hard
A product sells for €19 per unit, with a variable cost of €4 per unit and fixed costs of €18 000 per year. Budgeted sales are 1 380 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €18 000p = €19v = €4budget = 1 380
MS = %
6.Hard
A company sells 12 500 units per month at €25 each, with a variable cost of €20 per unit and fixed costs of €25 000 per month. The variable cost rises by €1 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 12 500p = €25v = €20 → €21F = €25 000
Q = units
Answer key
- 1. Q = 2000 units
- 2. S = 300000 €
- 3. Q = 5250 units
- 4. Q = 1100 units
- 5. MS = 13.04 %
- 6. Q = 15625 units
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