The break$-$even point $($BEP$)$ is the point where a company's revenue equals its costs. This point allows you to know when your firm will start to be profitable. So$,$ BEP is an important reference point which helps you understand the appropriate amount of product units that need to be sold in a fiscal year.

The following formula are

Break$-$Even Point $=$ Fixed costs $\frac{?}{?}$ Contribution Margin Contribution margin $=$ Price $-$ Variable costs

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Based on your current decisions, we will need to sell $870\%$ of our product inventory in order to break even. Every sale above that will add to our profit:

You have $10,000$ product units in a warehouse. The message says that you need to sell $87\%$ of the inventory to achieve the break$-$even point in this fiscal year. Now I have the following information:

Fixed costs $=$$$8,700,000$; Variable costs $=$$$2,000$

$0\mathrm{.}5$ point$>$ What should be the minimum price you need to charge to achieve the BEP if you can sell $8,700$ units only $(=87\%$ of $10,000$ units$)?$

$0\mathrm{.}5$ point$>$ Show your calculation.