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1. When a company has a selling price of $6 per item, contribution margin per item of $4 and they sell 500 items, how much could they have in fixed expenses to break even?
   1. $2,000
   2. $1,000
   3. $3,000
2. The number of items needed to get to the break-even point can change by:
   1. it cannot be changed, as the company has to sell a certain number of items to meet costs.
   2. increasing the selling price of the item is the only way to change the number needed to break even.
   3. lowering variable and fixed costs or increasing the selling price of the item.
3. If a company sells thousands of items for $1 each they will need to sell [dropdown1] than a company who has an item that sells for $100 each.
   1. an undetermined number, since we don't have their respective variable and fixed costs.
   2. more
   3. fewer
4. Using the equation method, calculate how many apples Farmer Jane needs to sell to break-even using the following information. Selling price- $1. Variable costs- $.25 per apple. Fixed costs-$1,000.
   1. 1000
   2. 4000
   3. 1334
5. Using the formula method, if fixed expenses are $5,000 and the contribution margin per item sold is $90, how many items need to be sold to break-even?
   1. 100 items
   2. 56 items
   3. 110 items
6. Once target profit is calculated, the equation method can be used to calculate the number of items needed to meet that goal. We need _______ in addition to our target profit to complete the equation.
   1. variable expenses and price per unit
   2. variable and fixed expenses
   3. contribution margin and fixed expenses
7. If Farmer Jane sells her tomatoes for $3 per pound and has variable cost of $1.50 per pound, how many pounds would she need to sell after her fixed expenses of $500 to show a net profit of $2,000?
   1. 833 pounds
   2. 1333 pounds
   3. 1667 pounds

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