The following 10 questions vary in degree of difficulty. Whereas some of the easier questions may be solved by using the formula for Break-Even Analysis, the more complicated questions may be easier to solve by using spreadsheet techniques.
A fair ground operator owns a carousel that has a full capacity of 20 persons. The operator charges $2 per ride. The electricity cost is $10 per ride. What is the minimum number of people the operator needs each ride to break-even?
A concert is organised and it is expected that every seat will be sold. The maximum number of seats is 2,000. What must the minimum price of a ticket be if the organisation is to break-even?
A non-profit organisation is raising money by organising a raffle. Tickets sell at $2.00 each and the cost of all prizes is $1500. How many tickets must be sold for the organisation to break-even>
How many cups of coffee must be sold a price of $1.50 per cup in order to break even if (a) You hired a coffee vending van at $100 per day and (b) The average cost of coffee ingredients was $0.40 per cup and (c) plastic cups cost $0.10 each.
A company manufactures desk lamps which sell at $20 each. Direct labour is $5.00 per lamp and direct materials is $6.00 per lamp. Overheads which must be covered total $99,000 per annum. How many lamps must the company sell in one year to break even?
A non-profit organisation sells raffle tickets using ticket sellers who are paid 10% commission on the value of tickets the sell. Each raffle ticket sells for $2 each. The total cost of prizes is $1008. How many tickets must be sold in total before the organisation covers all costs and begins to make a profit?
The organisors of a charity walk-a-thon are charging participants $10 per individual entry. Each participant will receive a hat and a water bottle that costs $5 in total (hat and bottle together). How many participants will organisors need to break-even?
It is expected that the number of children and the number of adults attending an event will be exactly equal. If ticket prices are $10 for children and $20 for adults, how many people (children and adults) in total must attend for the event to break even if there are no variable costs and all fixed costs are $4,500?
A Health Farm has 30 double rooms. The owner charges $125 per room per night. Each room costs $25 for servicing per night. The owner provides meals at $30 per person (evening meal and breakfast). On the basis that every room hired out will have two people in it, how many rooms must be hired out per night to break-even?
A soccer club is organising an Under 10's carnival and will charge $16 per team entered. Each team are allowed 8 players. The only cost will be medals which will be awarded to every player in the 1st, 2nd and 3rd placed teams. Medals will cost $5.30 each. How many teams is needed for the Carnival to break even?