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Break Even Analysis Questions:

Questions:
1. When fixed cost is 1000, unit variable cost is 4, unit price is 10, and sales quantity is 800,
what are the total cost, total revenue, net profit, and break-even quantity?
2. When fixed cost is 1500, unit variable cost is 6, unit price is 14, and sales quantity is
1000, what are the total cost, total revenue, net profit, and break-even quantity?
3. When fixed cost is 2000, unit variable cost is 10, unit price is 8, and sales quantity is 500,
what are the total cost, total revenue, net profit, and break-even quantity?
Goal Seeking Analysis
Example: Set Fixed Cost 500, Unit Cost 5, Sales Quantity 500; Set values in Goal Seek
window: Set Cell: G10, To Value: 2000, By Changing Cell: C8. What is the Unit Price?

1. With fixed cost of $700, unit variable cost of $6, and unit price of $9, what the sales
quantity would be in order to make a net profit of $2,000?

2. With fixed cost of $700, unit variable cost of $6, what the unit price would be in order to
have a break-even quantity of 100?

What-if Analysis
Scenario: Low Cost Scenario: Fixed Cost (C4) = $500, Variable Cost (C6) = $2;
High Cost Scenario: Fixed Cost (C4) = $1,500, Variable Cost (C6) = $8
Create Low and High Cost Scenario by selecting Scenario Manager in What-If Analysis
under Data Tab.

1. With unit price of $6, what the break-even quantity would be under low-cost scenario?

2. With unit price of $6, what the break-even quantity would be under high-cost scenario?