Because the profit of 4 per unit only applies at that level of sales, If the sales fall the fixed costs will remain the same and the profit per unit as calculated above, will fall and eventually become a loss per unit.

At 16,000

Gross profit = 16,000 x 432 = 6,912,000

Fixed costs = 6,844,602

Profit = 67,398 = 4.21 /unit

At 15,844 break even

Gross profit = 15844 x 432 = 7,922,000

Fixed costs = 6,844,602

Profit = 0 = 0 /unit

At 15,000

Gross profit = 15,000 x 432 = 6,480,000

Fixed costs = 6,844,602

Loss = 67,398 = -24.31 /unit

Selling price of game = Rs. 500

Quantity of Sales in first year = 16,000

Total fixed cost = Rs. 68,44,602

Fixed Cost per unit = 68,44,602/16,000 = Rs. 428

Total variable cost = Rs. 10,85,000

Variable Cost per unit = 10,85,000/16,000 = Rs. 68

Breakeven sales units = Total fixed cost/(Selling price - Variable cost per unit)

= 68,44,602/(500-68)

= 15,844 units

Profit per unit sold = Selling price - (Fixed cost per unit + Variable cost per unit)

= 500 - (428+68)

= Rs. 4 per unit

My question is, if I'm making a profit of Rs. 4 per unit sold, why is my breakeven sales calculation saying that I'll breakeven only after selling 15,844 units? Please explain in detail.