A company makes gadgets selling for $15 each. For 20,000 gadgets, the cost is $3 each, and the estimated fixed costs are $150,000. What is the break-even volume and revenue? Use the graphical approach to CVP analysis to solve.

Break-Even Volume

The quantity of goods or services sold at which total revenues equal total costs, resulting in neither profit nor loss.

Fixed Costs

Fixed costs refer to the expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Revenue

The total amount of money received by a company from its business activities, such as the sale of goods or services, before any expenses are deducted.