Welcome to this article whose sole purpose is to help you progress with corrected break-even exercises of the Operational Management subject of the BTS MCO.
Each break-even exercise is unique and targets different objectives.
If you would like to first see or review the course on the same theme, I invite you to read my article Calculation of the break-even point.
Lesson 13 Corrected exercises on the break-even point of this page mainly concern the break-even point, the dead point, differential income statement. fixed charges and variable charges.
You will also find corrected exercises on the following concepts: the distribution of fixed and variable costs according to percentages, ratios, the break-even point in value, the break-even point in volume.
Here is the list of the 13 corrected break-even exercises:
- Exercise No. 1 Break-even point: Differential income statement
- Exercise No. 2 Break-even point: Differential income statement
- Exercise No. 3 Break-even point: Distribution of expenses – Amounts
- Exercise No. 4 Break-even point: Distribution of costs – Percentages
- Exercise No. 5 Break-even point: Distribution of expenses – Ratios
- Exercise No. 6 Break-even point: Distribution of expenses – Ratios
- Exercise No. 7 Break-even point: Distribution of costs – Percentages – Ratios
- Exercise No. 8 Break-even point: Calculation of the SR in value
- Exercise No. 9 Break-even point: Calculation of the SR in volume
- Exercise No. 10 Break-even point: Calculation of the SR in volume
- Exercise No. 11 Break-even point: Margin on variable costs (MSCV)
- Exercise No. 12 Break-even point: Differential income statement – Margin rate on variable cost
- Exercise No. 13 Break-even point: Differential income statement – Margin rate on variable cost
Break-even point exercise No. 1: Differential income statement
States
The following elements are given:
- turnover: €450
- Variable expenses: €100
- Fixed charges: €75
Work to do
- Establish the differential income statement
Corrected break-even point for fiscal year 1
The differential income statement distinguishes between variable and fixed costs as follows:
(1): Margin on variable costs = turnover – variable costs (450 – 000)
(2): Variable cost margin rate or MSCV rate = Variable cost margin ÷ Turnover × 100 [(350 ÷ 000) × 450]
(3): Result = Margin on variable costs – fixed costs (350 – 000)
The company makes a profit of €275.
Break-even point exercise No. 2: Differential income statement
States
The following elements are given:
- Turnover: €950
- Production costs: €150
- Fixed charges: €175
- Distribution costs: €145
- Purchases of raw materials: €165
Work to do
- Establish the differential income statement.
Corrected break-even point for fiscal year 2
(1): Variable costs = purchases of raw materials + production costs + distribution costs (165 + 000 + 150)
(2): Variable cost margin rate = (variable cost margin ÷ turnover) × 100
(3): Margin on variable costs (or mscv) = Turnover – Variable costs (950 – 000)
(4): Result = Margin on variable costs – Fixed costs (490 – 000)
The company makes a profit of €315.
Break-even point exercise No. 3: Distribution of expenses – Amounts
States
The following table is given:
Work to do
- Enter the amounts of fixed charges and variable charges in a table.
Corrected break-even point for fiscal year 3
- purchases of goods are distributed in their entirety in variable expenses
- personnel costs are distributed entirely as fixed costs
- by default, a company's purchases of raw materials are to be included in variable costs.
- 250 x 000% = €10 for the variable part, the remainder in fixed charges
- by default, sales commissions are to be included in variable costs.
- 200 x 000% = €15 for the variable part, the remainder in fixed charges
- 300 x 000% = €5 for the variable part, the remainder in fixed charges
- 100 x 000% = €10 in variable costs, the remainder in fixed costs
- transport costs on purchases are variable charges so the total amount must be included in the charges
- all interest charges are included in fixed charges
- the entire Insurance Premium item is to be included in the expenses
Break-even exercise No. 4: Distribution of expenses – Percentages
States
The following table is given:
Work to do
- Enter the amounts of fixed charges and variable charges in a table.
Corrected break-even point for fiscal year 4
- purchases of goods are distributed in their entirety in variable expenses
- by default, a company's purchases of raw materials are to be included in variable costs.
- 250 x 000% = €10 for the variable part, the remainder in fixed charges
- by default, sales commissions are to be included in variable costs.
- 200 x 000% = €15 for the variable part, the remainder in fixed charges
- 300 x 000% = €85 for the fixed part
- 100 x 000% = €10 in variable costs, the remainder in fixed costs
- transport costs on purchases are variable charges so the total amount must be included in the charges
Break-even exercise No. 5: Distribution of expenses – Ratios
Work to do
- Enter the amounts of fixed charges and variable charges in a table.
Corrected break-even point for fiscal year 5
(1): 150 x 000
(2): 350 x 000
(3): the entire item is to be included in variable costs
(4): 250 x 000
(5): 250 x 000 or 0,85 – 250
(6): the entire item is to be included in variable costs (7): 200 x 000
(8): 200 x 000 or 0,75 – 200
(9): 300 x 000
(10): 100 x 000
(11): 100 x 000 or 0,95 – 100
(12): the entire item is to be included in variable costs (13): 150 x 000
(14): 85 x 000
Break-even exercise No. 6: Distribution of expenses
States
The following table is given:
Work to do
- Enter the amounts of fixed charges and variable charges in a table.
Corrected break-even point for fiscal year 6
(1): purchases are variable expenses by default. (2): 250 – 000
(3): Commissions are variable charges by default. (4): 200 – 000
(5): 300 – 000
(6): 100 – 000
(7): transport costs are linked to purchases, so they are variable charges.
Break-even exercise No. 7: Distribution of expenses – Percentages and Ratios
States
The following table is given:
Work to do
- Complete the table of distribution of fixed and variable costs.
Corrected break-even point for fiscal year 7
(1): 175 ÷ 000
(2): 175 – 000
(3): 250 x 000%
(4): 250 – 000
(5): all commissions are to be included in variable costs. (6): 200 x (000 – 1)
(7): 200 x 000
(8): 300 x (000 – 1)
(9): 300 x 000
(10): 100 x 000%
(11): 100 – 000
(12): transport costs on purchases are attached to purchases so they are variable charges.
(13): 85 x 000
Break-even point exercise No. 8: Calculation of the SR in value
States
The following elements are given:
- Selling price excluding VAT: €2
- Quantities sold: 100 units
- Variable expenses: €100
- Fixed charges: €45
Work to do
- Determine the break-even point in value.
Corrected break-even point for fiscal year 8
To carry out the requested work, we will have to use the following formulas:
[Sales revenue = Unit selling price x Quantity sold]
[Variable cost margin = Turnover – Variable costs]
[Variable cost margin rate = (Variable cost margin ÷ Turnover) x 100]
[Break-even point = Fixed costs ÷ Variable cost margin]
Calculation of turnover :
2 x 500 or €100
Calculation of the margin on variable costs :
250 – 000 or €100
Calculation of the margin rate on variable costs :
(150 ÷ 000) x 250 or 000%
Calculation of fixed charges : € 45
Calculation of the break-even point :
SR = 45 ÷ 000 or €0,6
The break-even point is €75, the turnover amount from which the company begins to make a profit.
Break-even point exercise No. 9: Calculation of the SR in volume
States
The following elements are given:
- Selling price excluding VAT: €2
- Quantities sold: 100 units
- Variable expenses: €100
- Fixed charges: €45
Work to do
- Determine the break-even point in volume.
Corrected break-even point for fiscal year 9
To carry out the requested work, we will have to use the following formulas:
[Sales revenue = Unit selling price x Quantity sold]
[Variable cost margin = Turnover – Variable costs]
[Variable cost margin rate = (Variable cost margin ÷ Revenue business) x 100]
[Break-even point = Fixed costs ÷ Variable cost margin]
[Break-even point in volume = break-even point in value ÷ unit selling price excluding VAT]
Calculation of turnover :
2 x 500 or €100
Calculation of the margin on variable costs :
250 – 000 or €100
Calculation of the margin rate on variable costs :
(150 ÷ 000) x 250 or 000%
Calculation of fixed charges :
45 000 €
Calculation of the break-even point :
SR = 45 ÷ 000 or €0,6
Calculation of the break-even point in volume :
75 ÷ 000 = 2 units
The break-even point is €75, which corresponds to 000 units sold, the sales volume from which the company begins to make a profit.
Break-even point exercise No. 10: Calculation of the SR in volume
States
The following elements are given:
- Selling price excluding VAT: €500
- Quantities sold: 100 units
- Variable expenses: €20
- Fixed charges: €14
Work to do
- Determine the break-even point in value.
Corrected break-even point for fiscal year 10
To carry out the requested work, we will have to use the following formulas:
[Sales revenue = Unit selling price x Quantity sold]
[Variable cost margin rate = (Variable cost margin ÷ Revenue business) x 100]
[Break-even point = (Sales x Fixed costs) ÷ Margin on variable costs]
Calculation of turnover :
500 x 100 or €50
Calculation of the margin on variable costs :
50 – 000 or €20
Calculation of fixed charges :
14 000 €
Calculation of the break-even point :
(50 x 000) ÷ 14 = €000
The break-even point is €23, a turnover for which the company achieves zero profit.
Break-even point exercise No. 11: Margin on variable cost – SR
States
The company Autique specializes in the manufacture and distribution of materials for SMEs. The manager, Mrs. Laféraille, wants to study the profitability of her activity. To do this, you have some elements provided in the appendix.
Annex :
- Net turnover excluding tax: €500
- Fixed charges: €80 (total charges: €000)
Work to do
- Determine the margin on variable cost in value and as a percentage of turnover.
- Calculate the break-even point.
Corrected break-even point for fiscal year 11
- Determine the margin on variable cost in value and as a percentage of turnover.
(1): Total charges – Fixed charges (400 – 000)
(2): Margin rate on variable costs = variable costs ÷ turnover × 100 (320 ÷ 000) ×500
(3): turnover – variable expenses (500 – 000)
(4): turnover rate – variable charge rate (100 – 64)
- Calculate the break-even point
To calculate the break-even point, the following formula must be applied: Fixed costs ÷ variable cost margin rate
Which gives: 80 ÷ 000 or €0,36
Madame Laféraille's business begins to be profitable when the turnover exceeds €222.
Break-even point exercise No. 12: Differential income statement – Margin rate on variable cost
States
The company Liméro specializes in the manufacture and distribution of toys for children aged 5-7.
The manager, Mr. Tristounet, wants to study the profitability of his activity. To do this, you have certain elements provided in the appendix.
Annex :
- Net turnover excluding tax: €1
- Fixed charges: €420
- Variable expenses: €610
Work to do
- Establish the differential income statement.
- Show that there is a relationship between the Result and the variable cost margin rate.
- Calculate the break-even point.
Corrected break-even point for fiscal year 12
- Establish the differential income statement.
- : 60 ÷ 000
- : 1 – 500
- : 100 to 40,67
- : according to statement
- : fixed costs do not depend on the company's activity
- : 890 – 000
- : margin rate on variable cost – fixed costs
- Show that there is a relationship between the Result and the variable cost margin rate.
The relationship between the Result and the variable cost margin rate is as follows:
Result = (variable cost margin rate x turnover) – fixed costs
This equation allows us to find any result with current fixed charges.
- Calculate the break-even point.
Break-even point = fixed costs ÷ variable cost margin rate
Break-even point = 420 ÷ 000 = €0,5933
The Limero business unit is profitable if and only if its turnover is greater than €707.
Break-even point exercise No. 13: Differential income statement – Break-even point
States
The Tarate company specializes in the manufacture and distribution of contact lenses.
Mrs. Lelouche, the manager, wants to study the profitability of her activity.
For this, you have certain elements provided in the appendix.
Annex :
- Net turnover excluding tax: €500
- Fixed charges: €42
- Variable expenses: €61
Work to do
- Establish the differential income statement.
- Calculate the break-even point.
- Determine the break-even point.
Corrected break-even point for fiscal year 13
- Establish the differential income statement.
- (61 ÷ 000) x 500
- 500 000 - 61 000
- 100 – 12,20 or (439 ÷ 000) x 500
- according to statement
- fixed costs do not depend on the company's activity
- 439 000 - 42 000
- margin rate on variable cost – fixed costs
- Calculate the break-even point
Break-even point = fixed costs ÷ variable cost margin rate
Break-even point = 42 ÷ 000
Break-even point = €47
Ms. Lelouche's business is profitable as soon as the turnover exceeds €47.
- Determine the break-even point.
The break-even point is the date on which the profitability threshold will be reached. To do this, we use the following formula:
(Break-even point ÷ turnover) x 360 days
Which gives:
(47 ÷ 835,99) x 500 days = 000 days
If we consider that the activity is regular, that there are 30 days in each month and that the company does not close during the year, the break-even point is reached on the 35th day of the year starting from 01/01/N. We thus arrive at 05/02/N.
Very useful
Hello Chaibou,
Thank you. Good luck to you.
Hello Mr. Trainer. I have a question for exercise 11. If I understand correctly, the break-even point must cover the expenses and then start making profits. How is it in this case that we reach the break-even point with 222 euros when our expenses are 222 euros? Thank you in advance for your explanations.
Hello Amine,
I will interpret the break-even point for you Amine: "When the company achieves a turnover greater than 222 euros then it covers its fixed costs. This does not mean that it only makes 222,22 euros in turnover. It is From this amount of turnover that it begins to make a profit. I hope I have been clearer.:)
Correct me if I'm wrong in my explanation, but the break-even point is indeed 222 euros, because if the turnover changes, the variable expenses also change accordingly (hence the name "variables"). So in this case, if the turnover is 222,22 euros, the variable expenses will be 222 euros (do the cross product: 222,22 x 142 / 222,22).
I checked before, and I'm right.
Thank you very much for what you do, good luck and congratulations.
I would like to have a lot of exercises and corrections in analytical accounting
Hello,
This site is specialized for the BTS MCO in which there is no analytical accounting.
Good luck to you.
Great even for the GF COMPTA in STMG I really understood now
Thank you Pauline for your comment. Very happy for your understanding!
Hello,
On what basis do we calculate the break-even point with several sales, for example in a table we have the turnover for 12 months of the year and we know the profitability threshold, please is it possible to give us a concrete example here.
Hello Soumaré,
The break-even point formula is as follows: (SR / CA) x 360. Then you must report your result in number of days or even in date.
For example, if you find 249 days, this is the 249th day of the year. This is the date from which the company starts making profits.
If I take my example again we have:
249 / 30 = 8,3 months
which gives 8 completed months so we arrive at 01/09/N.
Then for the decimals:
0,3 x 30 = 9 days
So the exact date is 9/09/N.
From this date the company begins to make profits.
Good luck Soumaré.
Result = mscv rate X CA- Fixed cost [the word CA is missing] I answer what you wrote: "The existing relationship between the Result and the variable cost margin rate is as follows:
Result = margin rate on variable cost – fixed costs »
Hello and above all thank you.
Well spotted. I just corrected my mistake.
thanks again
I am in BTS GPME and therefore the accounting program is visibly the same, I am taking this test on Thursday and I have finally memorized the formulas, thank you very much
Hello Melissa,
I'm glad the site helped you. Good luck to you! And especially SHIT for Thursday!
Very rich
Thank you !
Perfect for gradual revision
Indeed, there are several levels of difficulty. Good luck to you.
Thank you very much – very useful for BTS students
Hello Julie,
It is I who thank you.
Good luck to you.
Hello, thank you for your content, it's perfect to understand now my teacher does much more complicated exercises, but at least I understand the basics more than the application to do. Thank you 🙂
Hello,
Thank you and sorry for this late reply.
Good continuation.
Hi,
If for example a company has an order delivery with a 5% discount
how to establish the differential income statement taking into account the order please
Thank you for returning
Hello Soline,
Sorry for this late reply.
The reduction must be taken into account in the sale price, i.e. after deduction of the discount. The amount of the turnover must be net of reductions and excluding VAT.
Hoping to have answered your request.
Again sorry for the delay.
Good continuation.
Thank you.
Hello,
I am a BTS GPME student and I am taking my exams this year
Thank you very much for your lessons and exercises, they help me a lot 🙂
Have a good day
Hello Clara,
Good luck to you.
Thank you for your help, it seems very useful to me.
It is with great pleasure 🙂
Good evening sir I just came across your page and it is really enriching. At the same time I have a question, if the activity is not regular how to proceed with the calculation of the SR and its Break-Even Point? Thank you for being quick to answer please. Thanks in advance!
Hello,
In the case of irregular activity, the calculation must be made in proportion to the activity with an exact calculation of the number of days the company is open.
Good luck to you.