Break-even analysis worksheet with answers

A shop has fixed costs of €75 000 per year. Its variable costs are 40% of sales revenue. What sales revenue S does it need per year to break even?

A caterer expects to sell 1 000 meals per month. Each meal has a variable cost of €12 and the fixed costs are €10 000 per month. What is the lowest price p per meal at which the caterer breaks even?

A product can be made in two ways. Method A has fixed costs of €25 000 per year and a variable cost of €12 per unit. Method B, more automated, has fixed costs of €29 000 per year and a variable cost of €10 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €38 per unit with a variable cost of €18 per unit. Fixed costs are €100 000 per month. How many units Q must be sold per month to make a profit of €6 000?

A product sells for €12 per unit, with a variable cost of €4 per unit and fixed costs of €9 600 per year. Budgeted sales are 1 500 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €20 per unit, with a variable cost of €8 per unit and fixed costs of €14 400 per year. Budgeted sales are 1 920 units. Find the margin of safety MS as a percentage of budgeted sales.