A made-up workshop sells desk lamps for 50 euros each. Each lamp costs 20 euros in parts and packaging. Rent, insurance and the website cost 12,000 euros a year, however many lamps it sells.
Break-even point
Fixed costs, price and variable cost of a small product. Work out the contribution margin, the break-even quantity and the profit above it.
Exercise15 minBachelor +2CC BY 4.0
2 tasks · 15 min
What you will learn
- Calculate the contribution margin per unit
- Calculate the break-even quantity
- Work out the profit at a given quantity
Use it with a class
- 1. Copy the class link and share it with your class.
- 2. Learners finish the exercise and get a result code.
- 3. Paste the codes into Class results to see everyone at once.
Reuse this material
CC BY 4.0You may copy, adapt and share it, also commercially, as long as you credit ManyPI and link back.
"Break-even point" by ManyPI (https://manypi.com/edu/break-even-exercise), licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/)