Photo of corporate building skyline (b) Incremental Break-Even Unit Volume for Fixed Cost Actions (IBEV)

The Company of Corporate Conglomerations (3C) has recently developed a new product. The product is expected to be sold to the retailer at $30 a unit. 3C estimates the product's cost to manufacture and ship to be $10. Also, the company is launching an impressive ad campaign to precede the product's release. These costs will be roughly $14,750,000.

Average Unit Contribution = $30 - $10 = $20

IBEV = $14,750,000/$20 = 737,500 units