Break-even analysis worksheet with answers

A product sells for €18 per unit. The variable cost is €8 per unit and the fixed costs are €25 000 per month. Find the monthly profit Π when 3 500 units are sold (a loss is negative).

A caterer expects to sell 5 000 meals per month. Each meal has a variable cost of €3 and the fixed costs are €15 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product sells for €45 with a variable cost of €25 per unit. Fixed costs are €100 000 per month and profit is taxed at 25%. How many units Q must be sold per month to earn €30 000 after tax?

A product sells for €9 per unit with a variable cost of €4 per unit. Fixed costs are €10 000 per month. How many units Q must be sold per month to make a profit of €6 000?

A company sells 2 000 units per month at €12 each, with a variable cost of €6 per unit and fixed costs of €6 000 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 €19 per unit, with a variable cost of €15 per unit and fixed costs of €4 000 per year. Budgeted sales are 1 250 units. Find the margin of safety MS as a percentage of budgeted sales.