A company produces widgets with a fixed cost of $5000 and a variable cost of $20 per widget. If each widget is sold for $50, how many widgets must be sold to achieve a profit of $10,000?

Wed, 29 Apr 2026 19:22:04 +0000

**How Many Widgets Must a Company Sell to Reach a $10,000 Profit? A Clear Breakdown** In today’s often unpredictable market, many are calculating just how much business volume is truly needed to turn a target profit—especially for companies with structured cost models. Take, for example, a hypothetical widget manufacturer: with $5,000 in fixed costs, $20 in variable expenses per unit, and a selling price of $50 per widget, the math behind profitability becomes both practical and instructive. Understanding how many units need to be sold not only informs business planning but also empowers readers interested in entrepreneurship, pricing models, and revenue forecasting. So, what’s the break-even point—and how far beyond that does true profit grow? **Why This Calculation Matters Now** With rising costs and shifting consumer demand in the US economy, businesses and consumers alike are sharpening focus on cost efficiency and financial sustainability. This particular scenario—common in manufacturing, product distribution, and small-scale operations—reflects real challenges: spreading high initial fixed costs over units sold to cover overhead while generating a meaningful profit. As flexible digital economies grow, more users are turning to structured cost analysis for clarity. This formula helps clarify the return on scale—whether for startups, freelancers, or even online widget sellers navigating e-commerce trends.