CVP analysis with semifixed (step) costs. Shout Company has one product: printing logos on sweatshirts for businesses. The sales price of $20 remains constant per unit regardless of volume, as does...

CVP analysis with semifixed (step) costs. Shout Company has one product: printing logos on sweatshirts for businesses. The sales price of $20 remains constant per unit regardless of volume, as does the variable cost of $12 per unit. The company is considering operating at one of the following three monthly levels of operations:

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

b. If the company can sell everything it makes, should it operate at level 1, level 2, or level 3? Support your answer.