You own a small manufacturing business that produces widgets. You have spent $600,000 acquiring the fixed assets you need to produce widgets. Each widget costs you $20 to make and they sell for $65 each, so your variable cost is 30.8% of the overall revenue.

At your current level of operating leverage, how many widgets must you sell to break even?

• 13,333
• 7,059
• 18,000
• 9,231