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An early-stage venture that has achieved product/market fit is selling a hardware product at a price of $5,000 per unit. They have sub-contracted manufacturing to

An early-stage venture that has achieved product/market fit is selling a hardware product at a price of $5,000 per unit. They have sub-contracted manufacturing to a local company for the next year. The sub-contractor charges them $2,500 for each unit. Other fixed expenses for the next year are projected to be $60,000 for rent, $450,000 for salaries and $75,000 for travel.

How many units will they have to sell to break even?

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