You own a small manufacturing business that produces widgets. You have spent $150,000 acquiring the fixed assets you need to produce widgets. Each widget costs you $2 to make and they sell for $15 each, so your variable cost is 13.3% of the overall revenue.

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

• 10,000
• 19,950
• 13,482
• 11,539