To be profitable, a firm has to recover its costs. These costs includes 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 Blue Mouse Manufacturers: Blue Mouse is considering a project that will have fixed costs of $15,000,000. The product will be sold for $41.50 per unit and will incur a variable cost of $10.75 per unit. Given Blue Mouse's cost structure, it will have to sell how many units to break even on this project