The Last Outpost is a tourist stop in a western resort community. Kerry Yost, the owner of the shop, sells hand-woven blankets for an average price of $\$ 30$ per blanket. Kerry buys the blankets from native Americans at an average cost of $\$ 21$. In addition, he has selling expenses of $\$ 3$ per blanket. Kerry rents the building for $\$ 300$ per month and pays one employee a fixed salary of $\$ 500$ per month.

1. Determine the number of blankets Kerry must sell to break even.

2. Determine the number of blankets Kerry must sell to generate an income of $\$ 1,000$ per month.

3. Assume that Kerry can produce and sell his own blankets at a total variable cost of $\$ 16$ per blanket, but that he would need to hire one additional employee at a monthly salary of $\$ 600$.

a. Determine the number of blankets Kerry must sell to break even.

b. Determine the number of blankets Kerry must sell to generate an income of $\$ 1,000$ per month.