Jefferson owns a new music label. They sign artists and help them record and distribute their music. It cost them $400 for marketing, music production and engineering for every 200 CDs they make. They sell CDs for $5 each to the artist (for them to sell at their gigs). Each year they have $5,000 of recurring expenses.

In this scenario, match the appropriate variable in the break-even equation on the left to the correct value on the right. (note: you may need to do some math to arrive at the correct #)

Price

Fixed cost

variable cost