A local brewery makes a microbrew. The beer is prepared for retail sale in 40-gallon kegs. The retail sales price is $8.00 per keg. The average variable cost per keg is $45.00 and average annual fixed costs are $130,000. These three pieces of information are:

Average Per Unit Sales Price = $80.00 per keg

Average Per Unit Variable Cost = $45.00 per keg

Average Annual Fixed Costs = $130,000

The above assumption can be utilized to calculate the number of kegs that must be sold in order to break-even.