Break-even analysis worksheet with answers

A shop has fixed costs of €36 000 per year. Its variable costs are 70% of sales revenue. What sales revenue S does it need per year to break even?

A shop has fixed costs of €20 000 per year. Its variable costs are 70% of sales revenue. What sales revenue S does it need per year to break even?

A company sells 12 500 units at €12 each. The variable cost is €8 per unit and fixed costs are €20 000. 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 €10 per unit. Method B, more automated, has fixed costs of €35 000 per year and a variable cost of €5 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €12 per unit, with a variable cost of €4 per unit and fixed costs of €8 000 per year. Budgeted sales are 1 400 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €35 per unit, with a variable cost of €25 per unit and fixed costs of €15 000 per year. Budgeted sales are 2 100 units. Find the margin of safety MS as a percentage of budgeted sales.