The Millers are thinking of introducing a new product line in their store. For this exercise, assume the following:

• Total fixed costs for the line are estimated at $15,000.
• Total number of units they expect to sell are 10,000, based on a market study.
• Total variable costs are $20,000.
• Unit selling price is $4.50.

Based on the information, answer the following questions:

1. What is the break-even point in units?
2. What is the break-even point in revenue?
3. Should they go ahead with their plan?