Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. How much revenue do we need to take in before breaking even? What is the break-even point in units?

Please provide Step-by-Step calculation.

a) What is the Break-even point in units?

b) How much revenue at break-even point?

The following ones are extended questions (each is an independent case): It is required to have a brief explanation to your answer. The explanation could be through calculation or definition of break-even point.

c) If they sold 2000 units, would they gain or lose profit?

d) If they sold 3000 units, would they gain or lose profit?

e) If the fixed cost decreased by $1,000, would the break-even point be higher or lower?

f) If the direct labor cost increased by $1, would the break-even point be higher or lower?