This is the formula for Breakeven in units: Breakeven Units: Fixed Costs (Selling Price per Unit - Var. Cost per Unit) Here is how it is derived: Total Revenue Total Costs (Selling Price per Unit x Qty Sold) Fixed Costs + Variable Costs (Selling Price per Unit x Qty Sold) - Fixed Costs (Var Cost per Unit x Qty Sold) (Selling Price per Unit x Qty Sold)-(Var Cost per Unit x Qty Sold) - Fixed Costs (Selling Price per Unit-Var Cost per Unit) x Qty Sold Fixed Costs Qty Sold Fixed Costs/(Selling Price per Unit-Var Cost per Unit) Given this data from Example 55: Fixed Costs $10,000 Variable Cost per Unit $ 2.25 Selling Price Per Unit $ 4.00 Part 1: Use the formula above to calculate Breakeven Units in the shaded cell: 5,714