__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**