John is considering opening a location on campus to sell Lemons his  rent would be $600/month and she expects to sell each lemon for $6. Variable costs are $0.97 and labor is $2.76.

The also has the option to share space with a friend, which would cost her only $400/month in rent. 

Her friend wants $0.06 per lemon revenue sharing. What is Johns new break-even point?

For what volume of lemon does he prefer which option?