Break-even analysis worksheet with answers

A product sells for €16 per unit. The variable cost is €12 per unit and the fixed costs are €2 000 per month. Find the monthly profit Π when 630 units are sold (a loss is negative).

A shop has fixed costs of €60 000 per year. Its variable costs are 45% of sales revenue. What sales revenue S does it need per year to break even?

A product sells for €29 with a variable cost of €25 per unit. Fixed costs are €3 200 per month and profit is taxed at 25%. How many units Q must be sold per month to earn €1 500 after tax?

A product can be made in two ways. Method A has fixed costs of €10 000 per year and a variable cost of €8 per unit. Method B, more automated, has fixed costs of €40 000 per year and a variable cost of €2 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €20 per unit, with a variable cost of €12 per unit and fixed costs of €12 000 per year. Budgeted sales are 1 720 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €37 per unit, with a variable cost of €25 per unit and fixed costs of €18 000 per year. Budgeted sales are 2 400 units. Find the margin of safety MS as a percentage of budgeted sales.