Question: Determine the company's break-even point in units. Obtained the following information from the company's financial statements for the year just ended. In addition, you found out from production manager that the company produced 40 million units in that year. What will you determine the break-even point to be?
Sales $20,000,000
Variable costs 16,000,000
Revenue before fixed costs $ 4,000,000
Fixed costs 2,400,000
EBIT $1,600,000