1. A company sells 20,000 widgets in Year One for $8 each.
2. Variable costs are $4 each and the company made a net income of $50,000. 
3. In Year Two, the company raises the sales price to $10 each because of a 50 percent increase in fixed costs. 
4. Variable cost is not impacted. 

How many units must the company sell just to break even?

Answer rating: 100% (QA)

To calculate the breakeven point we need to find the number of units that the company needs to sell ... View the full answer