A manufacturer has a monthly fixed cost of $100,000 and a production cost of $12 for each unit produ

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A manufacturer has a monthly fixed cost of $100,000 and a production cost of $12 for each unit produced. The product sells for $20/unit

Cost Function C(u) where u is the number of units:
C(u) = cost per unit * u + fixed cost
C(u) = 12u + 100000

Revenue Function R(u) where u is the number of units:
R(u) = Sale price * u
R(u) = 20u

Break even point is where C(u) = R(u):
C(u) = R(u)
12u + 100000 = 20u

To solve for u, we type this equation into our search engine and we get:
u = 12,500