1.Easy
A company sells a product for €33 per unit. The variable cost is €18 per unit and fixed costs are €22 500 per month. How many units Q must it sell per month to break even?
F = €22 500p = €33v = €18
Q = units
Break-even analysis worksheet with answers
2.Easy
A shop has fixed costs of €120 000 per year. Its variable costs are 45% of sales revenue. What sales revenue S does it need per year to break even?
F = €120 000variable costs = 45% · S
S = €
3.Medium
A product sells for €22 with a variable cost of €12 per unit. Fixed costs are €20 000 per month and profit is taxed at 20%. How many units Q must be sold per month to earn €8 000 after tax?
p = €22v = €12F = €20 000T = 20%after-tax profit = €8 000
Q = units
4.Medium
A product sells for €35 per unit with a variable cost of €25 per unit. Fixed costs are €15 000 per month. How many units Q must be sold per month to make a profit of €12 000?
F = €15 000p = €35v = €25profit = €12 000
Q = units
5.Hard
A product sells for €9 per unit, with a variable cost of €6 per unit and fixed costs of €2 400 per year. Budgeted sales are 1 440 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €2 400p = €9v = €6budget = 1 440
MS = %
6.Hard
A product sells for €38 per unit, with a variable cost of €18 per unit and fixed costs of €20 000 per year. Budgeted sales are 1 300 units. Find the margin of safety MS as a percentage of budgeted sales.
F = €20 000p = €38v = €18budget = 1 300
MS = %
Answer key
- 1. Q = 1500 units
- 2. S = 218182 €
- 3. Q = 3000 units
- 4. Q = 2700 units
- 5. MS = 44.44 %
- 6. MS = 23.08 %
Full step-by-step solutions: practise this topic on examproblems.com.