Sam's Sushi serves only a fixed-price lunch. The price of $8 and the variable cost of $3 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check-out lanes. Sam has three choices, as follows.

	Monthly Volume Range (Number of Meals)	Total Fixed Costs
1 Lane	05,000	$	27,000
2 Lanes	5,0018,000		31,000
3 Lanes	8,00110,000		36,000

Required:

a. Calculate the break-even point(s).

b-1. Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve.

b-2. Should Sam operate at one, two, or three lanes?