Break-even analysis worksheet with answers

A shop has fixed costs of €20 000 per year. Its variable costs are 55% of sales revenue. What sales revenue S does it need per year to break even?

A company sells a product for €16 per unit. The variable cost is €8 per unit and fixed costs are €4 000 per month. How many units Q must it sell per month to break even?

A product sells for €30 per unit with a variable cost of €18 per unit. Fixed costs are €14 400 per month. How many units Q must be sold per month to make a profit of €12 000?

A product can be made in two ways. Method A has fixed costs of €20 000 per year and a variable cost of €10 per unit. Method B, more automated, has fixed costs of €40 000 per year and a variable cost of €5 per unit. At what yearly volume Q do both methods cost the same?

A product sells for €16 per unit, with a variable cost of €6 per unit and fixed costs of €12 000 per year. Budgeted sales are 1 560 units. Find the margin of safety MS as a percentage of budgeted sales.

A product sells for €26 per unit, with a variable cost of €20 per unit and fixed costs of €3 000 per year. Budgeted sales are 650 units. Find the margin of safety MS as a percentage of budgeted sales.