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Break-even calculations

Total questions: 17

Worksheet time: 21mins

Name
Class
Date
1.

Two of these formulas are correct for working out the break-even point. Which two

a)

Fixed Costs / Contribution Margin per unit

b)

Total Costs - Fixed Costs x variable costs per unit

c)

Fixed Costs / Sales price per unit - variable costs per unit

d)

Contribution Margin per unit / Fixed Costs

2.

If the average variable costs £10, average selling price is £25 and fixed costs are £60,000, then what is the break-even output?

a)

5000

b)

7000

c)

6000

d)

4000

3.

Fixed costs: = £30,000

Variable cost: = £200 per photo shoot

Forecast output (Sales): = 140 photo shoots

Selling price: = £1000 per photo shoot


What is the Total Contribution?

a)

£112 000

b)

£112 500

c)

£375

d)

£800

4.

What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?

a)

220,360

b)

150,300

c)

183,633

d)

225,120

5.

We are going to manufacture Whats-Its. The Whats-It machine costs £4000.It also costs £5 for materials and labour for each Whats-It. We are planning to sell our Whats-Its for £12 each. How many Whats-Its must we sell in order to breakeven?

a)

571.42

b)

572

c)

570. 63

d)

571

6.

What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?

a)

220,360

b)

150,300

c)

183,633

d)

225,120

7.
My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item? 
a)
£300
b)
£500
c)
£200
d)
Cannot be calculated
8.

Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).


Calculate the Total Contribution

a)

£56.64

b)

£14 160

c)

£14 410

d)

£566.40

9.

Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).


Calculate the Contribution per unit

a)

£56.64

b)

£14 160

c)

£14 410

d)

£566.40

10.

Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).


Calculate the Profit or Loss

a)

£9 560

b)

£95 600

c)

£662 5000

d)

£660 8060

11.

Fixed Costs £42 525

Variable Costs £3 per Item

Forecast Output (Sales) 11 262

Sales Revenue £135 144


What is the Break Even?

a)

4725

b)

12

c)

5000

d)

None of these

12.

Parc Oasis Ltd. has fixed cost of $15,000 per month, with unit variable cost of $200 and a selling price of $500 per unit.


What is Parc Oasis Ltd. break-even level of output per month?

a)

21

b)

30

c)

50

d)

75

13.

If average variable cost is £10, and average selling price is £25, then what is contribution?

a)

£35

b)

£15

c)

£-15

d)

£40

14.

What is the break-even point in units for company where total fixed costs are £275,450

selling price per units £16

variable cost per unit is £14.75

a)

220,360

b)

183,633

c)

150,300

d)

225,120

15.

The break even level of output for a firm is 800 units and it is currently making 950 units. What is its margin of safety?

a)

150 units

b)

250 units

c)

300 units

d)

1750 units

16.

Simon has worked out the following figures for new Bobble Hats he is going to sell. He estimates that he can produce 20 000 hats a month with a selling price of £3.50. He expects the machinery costs to be £60 000 per annum, staff salaries are £72 000 per annum and raw materials cost £30 000 per month.


What is the margin of safety?

a)

66 000

b)

74 000

c)

200 000

d)

174 000

17.
What is the break-even point in units for a company whose total fixed costs are $275,450; selling price per unit is $16; and variable cost per unit is $14.75?
a)
220,360
b)
150,300
c)
183,633
d)
225,120