A company produces widgets at a cost of $5 per unit and sells them for $12 each. Fixed costs are $2,000. How many widgets must be sold to break even?

Fri, 17 Apr 2026 23:57:57 +0000

**How Many Widgets Must Be Sold to Break Even When Costs Are Under $12? A Closer Look at a Common Business Break-Even Equation** In today’s fast-moving marketplace, even everyday manufacturing and pricing models spark quiet interest—especially when a simple math question reveals how businesses calculate sustainability. For those curious about the emerging adult-adjacent niche where precision meets real-world decision-making, one question stands out: *How many widgets must be sold to break even when production costs $5 per unit, sells for $12, and carries $2,000 in fixed costs?* This isn’t just a textbook formula—it reflects the kind of financial clarity businesses track to guide growth and stability. Understanding the break-even point helps entrepreneurs, investors, and curious minds see how profitability begins. At the core, break-even analysis shows the exact volume needed where total revenue matches total costs—no more, no less. For this example, every widget sold contributes $7 toward covering costs after the $5 production expense, with $2,000 in fixed overhead requiring careful volume planning. **Why This Question Matters Now**