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For the Oliver Company to break even, the total revenue must equal the sum of the variable costs and the fixed cost. Mathematically, this can be represented as: Total revenue = 0.4*(Total revenue) + (Fixed Costs) Let the number of units sold be x. then, 7*x = 0.4*(7*x) + 6300 Thus, x = 6300/(0.6*7) = 1500 units. Thus the company will have to sell 1500 units to break even.