Break Even - 15 Small Case studies and Questions

15 x Mini Case Study Break Even Quesitons and Answers

6 pages printable, easily to paste to Google Classroom/ Teams, Could also import into MS Forms/ google forms

5 x Simple versions
EG
Case Study 1 — BreezeBite Smoothies Business: A start-up smoothie stand.

• Forecasted sales: 8,000 units
• Selling price per smoothie: £4.50
• Variable cost per smoothie: £2.00
• Fixed costs: £12,000 per year

Questions:
a) Calculate the break-even point in units.
b) Calculate the margin of safety (units).
c) Due to rising fruit prices, variable costs increase to £2.50. What is the new break-even point?
d) What is the new margin of safety?
**

10 x Case studies with more detail to read
EG

Case Study 6 — MountainMug Co.
Extract:
MountainMug Co. is planning to launch an insulated travel mug. The company expects strong demand, predicting they can sell 20,000 mugs in the first year. Each mug is expected to sell for £15, and production will cost £7 per unit. The company must also cover annual fixed manufacturing and marketing costs of £80,000.

Questions:
a) Break-even point (units)
b) Margin of safety (units)
c) New break-even point if selling price falls to £14
d) New margin of safety