What is the breakeven point in number of units produced?

The breakeven point is the number of units that have to be
produced for the total cost of production to be equal to the total revenue earned by selling the
products.

Let us take the total fixed costs to be F, the variable
costs per unit to be V and the price of one unit be C.

If break even
is achieved when n units are produced:

F + n*V =
n*C

or n = F/(C - V)

If the fixed costs
that are involved in the manufacture of products are high the break even is achieved when a
higher number of total units are produced. Only after the breakevn number of number of units have
been sold does the company actually start to make profits. The profit made on units produced
after the breakeven point has been crossed is equal to the price - variable
costs.