Southfield Stylers, with three chairs, offers a no$-$frills hair style service at a single price. The price of $$27$ and the variable cost of $$7$ per customer remain constant regardless of volume. The owner can handle additional volume by hiring on$-$call stylists to staff the two additional chairs if demand is sufficient. Southfield pays the on$-$call stylists for one full week regardless of actual demand that week. Southfield has three choices every week, as follows:

Weekly Volume Range

$($Number of Customers$)$ Total Fixed Costs

$1$ Chair $0117$ $ $2,980$

$2$ Chairs $1182343,940$

$3$ Chairs $2353345,740$

Required:

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

b$-1.$ Calculate the profit $($or loss$)$ for each alternative, assuming sufficient demand to keep all chairs busy.

b$-2.$ Should Southfield operate with one, two, or three chairs?