A factory makes canned tomatoes. These cans are sold to various grocery store chains under their respective generic-brands. Current capacity if 40 million cans. At the current annual production level of 35 million cans, the factory has the following financial information (per 1,000 cans)

Selling Price	$750
Fixed costs	$400
Variable costs	$320
Net Income	$ 80

Health-E-Foods, a new competitor in the grocery industry has approached the factory to purchase 7 million cans per year. Health-E-Foods would like the canned tomatoes to compete with high-end healthy canned tomatoes sold by other grocery stores. In order to obtain this contract, there is a required change to the production process that will require a different mix of food preservatives - this will increase the variable costs by $60 per 1,000 cans. As well, the change in food preservatives will require an improved quality control department and certified food chemists be on staff - this will cost an additional $250,000 per year.

You have just learned that Health-E-Foods recently cancelled a contract with one of your competitors because they could not adapt to the new production requirements.

What is the indifference point for this special offer?

What are the qualitative factors that should be considered?