Leslie Mittelberg is considering the wholesaling of a leather handbag from Italy. She must travel to Italy to check on quality and transportation. The trip will cost $3000. The cost of the handbag is $10 and shipping to the United States can occur through the postal system for $2 per handbag or through a freight company which will ship a container that can hold up to 2000 handbags at a cost of $2000. The freight company will charge $2000 even if less than 2000 handbags are shipped. Leslie will try to sell the handbags to retailers for $20. Assume there are no other costs and benefits.

a. What is the break-even point if shipping is through the freight company?

b. What is the minimum number of units sold if Leslie uses the freight company and she wants a profit of $19,000?

c. At what output level would the two shipping methods yield the same profit?