The breakevenpoint is the point at which costs and sales are equal to each other and therefore, the profit is zero.
The breakeven point in terms of number of units sold can be determined as follows;
[tex]\begin{gathered} Breakeven\text{ units=}\frac{Fixed\text{ costs}}{\text{ Selling price per unit-}Variable\text{ cost per unit}} \\ \text{Breakeven units=}\frac{88000}{3-1} \\ \text{Breakeven units=}\frac{88000}{2} \\ \text{Breakeven units=44000} \end{gathered}[/tex]In order to breakeven, the company will have to sell 44,000 units
