Solved Example
A company produces a product that has a life expectancy of three years. The company has a total of 7,000 products that it needs to sell in order to break even. Each product costs the company $10 to produce.
The company needs to sell an average of 2.3 products per day in order to break even.
In order to break even, the company needs to sell 7,000 products / 2.3 products per day = 3,000 days
This means that the company will break even in 3,000 days.