1.Easy
A company sells a product for €12 per unit. The variable cost is €6 per unit and fixed costs are €15 000 per month. How many units Q must it sell per month to break even?
F = €15 000p = €12v = €6
Q = units
Break-even analysis worksheet with answers
2.Easy
A shop has fixed costs of €90 000 per year. Its variable costs are 75% of sales revenue. What sales revenue S does it need per year to break even?
F = €90 000variable costs = 75% · S
S = €
3.Medium
A product sells for €24 per unit with a variable cost of €4 per unit. Fixed costs are €24 000 per month. How many units Q must be sold per month to make a profit of €5 000?
F = €24 000p = €24v = €4profit = €5 000
Q = units
4.Medium
A product sells for €30 per unit with a variable cost of €15 per unit. Fixed costs are €12 000 per month. How many units Q must be sold per month to make a profit of €6 000?
F = €12 000p = €30v = €15profit = €6 000
Q = units
5.Hard
A product sells for €32 per unit, with a variable cost of €12 per unit and fixed costs of €10 000 per year. Budgeted sales are 630 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €10 000p = €32v = €12budget = 630
MS = %
6.Hard
A company sells 10 000 units per month at €22 each, with a variable cost of €18 per unit and fixed costs of €20 000 per month. The variable cost rises by €2 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 10 000p = €22v = €18 → €20F = €20 000
Q = units
Answer key
- 1. Q = 2500 units
- 2. S = 360000 €
- 3. Q = 1450 units
- 4. Q = 1200 units
- 5. MS = 20.63 %
- 6. Q = 20000 units
Full step-by-step solutions: practise this topic on examproblems.com.