1. Using the equation method, calculate how many bikes Mike needs to sell to break even with the following information. Selling Price=$150. Variable costs per bike=$75. Fixed costs=$7,500. Show your work.
2. 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? Show your work.
3. 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? Show your work.