Mastering Breakeven Calculations

Grace runs a small business selling handmade candles. Her fixed costs for things like rent and utilities are £1,000. Each candle she sells is priced at £25, but it costs her £15 to make each one. How many candles does she need to sell to reach her breakeven point?

• A) 100 candles

• B) 200 candles

• C) 50 candles

• D) 80 candles

Max started a small business selling handmade crafts. He calculated that he would break even if he sold 400 crafts. If he sells each craft for £30 and the cost to make each craft is £20, what are Max's total fixed costs?

• A) £4,000

• B) £8,000

• C) £12,000

• D) £6,000

Evie started a small business selling handmade candles. Each candle is sold for £50. The variable costs, including materials and packaging, are £30 per candle, and the fixed costs, such as rent and utilities, are £5,000. Thomas and Arthur are curious to know how many candles Evie must sell to achieve a target profit of £1,000?

• A) 120 candles

• B) 150 candles

• C) 200 candles

• D) 300 candles

Amelia has started a small business selling handmade crafts. She has calculated her fixed costs to be £2,500. She plans to sell each craft for £50. If she wants to reach the breakeven point at 100 units sold, what should be her variable cost per craft? The breakeven formula is given by Breakeven Point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).

• A) £25

• B) £50

• C) £75

• D) £30

Jacob started a small business. His fixed costs for the business are £10,000, the price he charges per unit of his product is £200, and the variable cost per unit is £150. Anaya and William are trying to calculate the breakeven revenue for Jacob's business. Can you help them?

• A) £20,000

• B) £40,000

• C) £60,000

• D) £80,000

Oliver has started a small business selling handmade jewelry. His fixed costs are £3,000. He plans to sell each piece of jewelry for £75. If he wants to reach the breakeven point at 150 units sold, what should be his variable cost per piece? The breakeven formula is given by Breakeven Point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).

• A) £55

• B) £50

• C) £45

• D) £60

Isabella runs a small business selling handmade soaps. Each soap is sold for £20. The variable costs, including materials and packaging, are £10 per soap, and the fixed costs, such as rent and utilities, are £2,000. How many soaps must Isabella sell to achieve a target profit of £500?

• A) 125 soaps

• B) 150 soaps

• C) 175 soaps

• D) 200 soaps

Harry started a small business. His fixed costs for the business are £5,000, the price he charges per unit of his product is £100, and the variable cost per unit is £50. Can you calculate the breakeven revenue for Harry's business?

• A) £10,000

• B) £20,000

• C) £30,000

• D) £40,000