Valdez Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) $ 240,000 Variable expenses 180,000 Contribution margin 60,000 Fixed expenses 54,000 Net operating income $ 6,000 The break-even point in unit sales is closest to: Multiple Choice 5,400 units 5,850 units 4,500 units 0 units

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Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.

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