Break Even Analysis Financial Math Worksheet Page 4

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a) How many sets must be sold to Break-Even?
b) What was the size of the loss when 300 sets were sold?
c) How much profit is made if 600 sets are sold?
d) What is the variable cost of producing 600 sets?
e) What is the contribution if 600 sets are sold?
f) What is the margin of safety if sales remain at 600 sets?
g) What is the margin of safety expressed as a percentage of this sales
level?
Activity 6
Your company makes and sells a single product, which has a Selling Price of £24
per unit. The unit variable cost is £18.00. Budgeted Sales for the year are
140000 units. Budgeted Fixed Costs for the year are £800000.
a) What is the break-even point in both units and £
b) Calculate the margin of safety as a % of budgeted sales
Activity 7 - Price, Porter & Co
Price, Porter & Co manufacturer packs of writing equipment for schools. The
annual fixed costs of producing packs are £40,000 and the variable costs are
£3 per pack. The packs sell for £5 each.
a) Calculate the number of packs that the company needs to sell in order to
break-even.
I have attached a break-even chart for you to use. Using the chart for
Price Porter & Co calculate the following:

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