What unit sales volume would its income equal its costs?

Question

A company's fixed operating costs are $500,000, its variable costs are $3.00 per unit, and the product's sales price is $4.00. What is the company's breakeven point, i.e., at what unit sales volume would its income equal its costs?

Answer 1

BEP = (TFC) / (SP - VC)

So 500,000 / (4 - 3) = 500,000 units