1.Easy
A company sells a product for €22 per unit. The variable cost is €18 per unit and fixed costs are €20 000 per month. How many units Q must it sell per month to break even?
F = €20 000p = €22v = €18
Q = units
Break-even analysis worksheet with answers
2.Easy
A company sells a product for €32 per unit. The variable cost is €30 per unit and fixed costs are €2 400 per month. How many units Q must it sell per month to break even?
F = €2 400p = €32v = €30
Q = units
3.Medium
A company sells 6 000 units at €25 each. The variable cost is €15 per unit and fixed costs are €50 000. Find the degree of operating leverage DOL at this sales level.
Q = 6 000p = €25v = €15F = €50 000
DOL =
4.Medium
A product sells for €17 per unit with a variable cost of €12 per unit. Fixed costs are €12 500 per month. How many units Q must be sold per month to make a profit of €12 000?
F = €12 500p = €17v = €12profit = €12 000
Q = units
5.Hard
A company sells 8 000 units per month at €23 each, with a variable cost of €15 per unit and fixed costs of €32 000 per month. The variable cost rises by €4 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 8 000p = €23v = €15 → €19F = €32 000
Q = units
6.Hard
A company sells 1 500 units per month at €45 each, with a variable cost of €30 per unit and fixed costs of €15 000 per month. The variable cost rises by €3 per unit and the price stays the same. How many units Q must now be sold per month to keep the same profit?
Q = 1 500p = €45v = €30 → €33F = €15 000
Q = units
Answer key
- 1. Q = 5000 units
- 2. Q = 1200 units
- 3. DOL = 6
- 4. Q = 4900 units
- 5. Q = 16000 units
- 6. Q = 1875 units
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