A product sells for €20 per unit. The variable cost is €15 per unit and the fixed costs are €2 500 per month. Find the monthly profit Π when 750 units are sold (a loss is negative).
Break-even analysis worksheet with answers
A company sells a product for €35 per unit. The variable cost is €25 per unit and fixed costs are €25 000 per month. How many units Q must it sell per month to break even?
A product sells for €28 with a variable cost of €8 per unit. Fixed costs are €40 000 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €12 000 after tax?
A product sells for €17 with a variable cost of €15 per unit. Fixed costs are €4 000 per month and profit is taxed at 25%. How many units Q must be sold per month to earn €1 500 after tax?
A company sells 4 000 units per month at €21 each, with a variable cost of €15 per unit and fixed costs of €12 000 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 €28 per unit, with a variable cost of €20 per unit and fixed costs of €9 600 per year. Budgeted sales are 1 560 units. Find the margin of safety MS as a percentage of budgeted sales.
Answer key
- 1. Π = 1250 €
- 2. Q = 2500 units
- 3. Q = 2750 units
- 4. Q = 3000 units
- 5. Q = 4800 units
- 6. MS = 23.08 %
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