The formula used to find the number of units that need to be sold in order to breakeven or generate a target profit is:

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The formula for calculating the breakeven point in units is (fixed expenses + operating income) ÷ contribution margin per unit. This formula represents the number of units that need to be sold to cover all fixed and variable costs and generate zero profit. If a target profit is given, the formula can be adjusted by adding the target profit to the fixed expenses and then dividing by the contribution margin per unit to determine the number of units that need to be sold to achieve the target profit.

The Formula Used to Find the Number of Units That