IS-lB. (Break-even point) Roberto Martinez is the chief financial analyst at New Wave Pharmaceuticals (NWP), a company that produces a vitamin claimed to prevent the common cold. Roberto has been asked to determine the company's break-even point in units. He obtained the following information from the company's financial statements for the year just ended. In addition, he found out from NWP's production manager that the company produced 40 million wlits in that year. What will Roberto determine the break-even point to be?

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Sales Variable costs Revenue before fixed costs Faxed costs EBIT $20,000,000 16,000,000 $ 4,000,000 2,400,000 $1,600,000