To be profitable, a firm has to recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it. would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Petrox Oil Co.: Petrox Oil C0, is considering a project that will have fixed costs of $12,000,000. The product will be sold for $41.50 per unit, and will incur a variable cost of $12.80 per unit. Given Petrox's cost structure, it will have to sell units to break even on this project (QBE). firm's market is big enough for the firm to break even. In fact, she believes that the firm also thinks that the demand for Petrox's product is relatively inelastic (so the firm can volume of product sold). Assuming that the firm can sell 150,000 units, what price must it $88.16 per unit $111.36 per unit $92.80 per unit