Let's assume that Steve in Exercise 6 also decided to make birdhouses. He can make 7 birdhouses a day at a $3 variable cost per unit.
Given that his fixed cost stays at $3,000 and that he can sell each birdhouse at $10 but would need to wait for 10 days to collect his revenue, calculate:
(a) Break-even time
(b) Break-even revenue
(c) Break-even quantity