The selling price per unit of a product is $35, the fixed costs per month are $12,700, and the total variable costs per month are $11,800 at the break-even point. What is the number of units required to break even?

To find the break-even point in units, we use the formula:

\[
\text{Break-even point in units} = \frac{\text{Fixed Costs}}{\text{Selling Price per Unit} - \text{Variable Cost per Unit}}
\]

### Step 1: Calculate the Variable Cost per Unit
At the break-even point, the total variable costs are $11,800, and let’s denote the number of units as $ x $.

\[
\text{Variable Cost per Unit} = \frac{11,800}{x}
\]

### Step 2: Set up the Break-Even Equation
The total revenue at the break-even point equals total costs:

\[
35x = 12,700 + 11,800
\]

\[
35x = 24,500
\]

\[
x = \frac{24,500}{35}
\]

\[
x = 700
\]

### Conclusion
The number of units required to break even is **700**.

Would you like further details or clarifications? Here are some related questions:

1. What happens to the break-even point if the selling price increases?
2. How would a decrease in fixed costs affect the break-even analysis?
3. What role does contribution margin play in break-even calculations?
4. How do changes in variable costs impact break-even units?
5. Can the break-even point be used to assess profitability targets?

**Tip:** Always analyze both fixed and variable costs when planning to adjust pricing strategies.

Discover how to calculate the break-even point in units for a product priced at $35 per unit, with fixed costs of $12,700 and variable costs of $11,800. This detailed guide includes formulas and step-by-step calculations for Grades 9-12 students.

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