Hi,
Each item can be produced for $2.16, is sold at 3.49.
Yes, Profit/item = $3.49 - $2.16 = $1.33
a: How many items must be sold to break even? Invests 5,000
$5,000/1.33 = 3759.4 OR 3760 items to break even
3760*1.33 = 5000.8
b: How many items must be sold to make a profit of $8,500?
3760 + $8,500/1.33 = 3760 + 6391 = 10,151