Break-Even and Sensitivity Analysis - Worked Examples

Example 1 — Fixed cost PHP 600k, price PHP 500/unit, variable cost PHP 300/unit. Find break-even quantity.

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Example 2 — Find break-even revenue for Example 1.

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Example 3 — Price is PHP 280/unit and variable cost is PHP 300/unit. Can positive output recover PHP 500k fixed cost?

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Example 4 — Fixed cost rises 20% from PHP 600k while unit margin remains PHP 200. What happens to break-even quantity?

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Example 5 — Unit price falls from PHP 500 to PHP 450 while variable cost remains PHP 300 and fixed cost PHP 600k.

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Example 6 — A project's NPV is PHP 400k if annual benefit is PHP 1.2M and PHP -100k if benefit is PHP 900k. What does the sensitivity result show?

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Example 7 — Linear interpolation for a threshold: NPV +200k at demand 10,000 units and -100k at 8,000 units.

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Example 8 — Is changing only fuel price from -20% to +20% a probabilistic risk analysis?

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Example 9 — Base scenario uses normal demand and maintenance; adverse scenario combines lower demand, higher maintenance, and lower salvage. What method is this?

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Example 10 — A production line adds another shift after 5,000 units, increasing fixed supervision cost. Can one break-even line be extrapolated beyond 5,000 units?

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Example 11 — Two-way sensitivity: fixed cost PHP 600k. Compare break-even quantity for price p = PHP 450 or 500 and variable cost v = PHP 300 or 340.

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Example 12 — Threshold design: fixed cost PHP 600k, variable cost PHP 300/unit, and management wants break-even at no more than 3,500 units. Find the minimum unit price under the linear model.

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