Break-even analysis worksheet with answers

A product sells for €6 per unit. The variable cost is €4 per unit and the fixed costs are €8 000 per month. Find the monthly profit Π when 5 000 units are sold (a loss is negative).

A product sells for €33 per unit. The variable cost is €25 per unit and the fixed costs are €20 000 per month. Find the monthly profit Π when 3 130 units are sold (a loss is negative).

A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €15 per unit. Method B, more automated, has fixed costs of €40 000 per year and a variable cost of €12 per unit. At what yearly volume Q do both methods cost the same?

A company sells 2 000 units at €20 each. The variable cost is €12 per unit and fixed costs are €6 400. Find the degree of operating leverage DOL at this sales level.

A company sells 6 250 units per month at €8 each, with a variable cost of €6 per unit and fixed costs of €5 000 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?

A product sells for €14 per unit, with a variable cost of €12 per unit and fixed costs of €1 000 per year. Budgeted sales are 900 units. Find the margin of safety MS as a percentage of budgeted sales.