5. Finance

Break Even — Quiz

Test your understanding of break even with 5 practice questions.

Practice Questions

Question 1

A business has a contribution margin ratio of $ 30\% $. If its total fixed costs are $$ \$45,000 $$, what is the break-even point in sales revenue?

Question 2

A company sells a product for $$ \$120 $ per unit. The variable cost per unit is $ \$70 $. If the company's total fixed costs are $ \$60,000 $, and it aims for a target profit of $ \$20,000 $$, how many units must it sell?

Question 3

A business has current sales of $$ \$250,000 $ and a break-even point in sales revenue of $ \$180,000 $$. What is its margin of safety in sales revenue?

Question 4

If a company's total fixed costs are $$ \$30,000 $, and its contribution margin ratio is $ 25\% $$, what is the break-even point in sales revenue?

Question 5

A company's break-even point is $ 900 $ units. If the selling price per unit is $$ \$110 $ and the variable cost per unit is $ \$60 $$, what are the total fixed costs of the company?