I need to find the break-even point but am not given the units. This is what I am given.

sales are 1,250,000
Variable costs are 40% of sales
initial investment is 2,000,000

To find the break-even point, we need to determine the number of units that need to be sold in order to cover all the costs and expenses. However, without the information about the units, we cannot directly calculate the break-even point in terms of units. Instead, we can calculate it in terms of dollars.

To find the break-even point in dollars, we need to determine the total fixed costs and the contribution margin. The contribution margin is the amount left from each dollar of sales after variable costs have been deducted.

Here's how you can calculate the break-even point:

1. Calculate the total fixed costs:
Total Fixed Costs = Initial Investment

In this case, the initial investment is given as $2,000,000.

2. Calculate the contribution margin:
Contribution Margin = 100% - Variable Costs

The variable costs are given as 40% of sales, which means the contribution margin is 60% (100% - 40%).

3. Calculate the break-even point in dollars:
Break-even Point (in dollars) = Total Fixed Costs / Contribution Margin

Substituting the values:
Break-even Point (in dollars) = $2,000,000 / 0.6

Calculate the result:
Break-even Point (in dollars) = $3,333,333.33

Therefore, the break-even point in this case would be $3,333,333.33. This means that the company needs to make sales of at least $3,333,333.33 in order to cover all costs and expenses and start making a profit.