As The Fresh Connection continues to develop, you must decide whether to keep packaging PET bottles with the current process or to invest in a streamlined process.If they continue with the current process, the fixed cost will be $16,591 and the variable costs will be $1.42 per unit.If they do decide to invest, the fixed cost will be $66,853 and the variable cost will be $0.44 per unit.At what number of PET bottles would they be indifferent between the two alternatives?

This is a take-off of traditional break-even problems.In break-even you are looking for the number of units where profit = 0.

Profit = Revenue - Fixed Cost - Total Variable Cost = 0

Revenue = Units Sold * Selling Price

Fixed Cost = Stated Value

Total Variable Cost = Units Produced * Variable Cost per Unit

Unless stated otherwise, the number of units produce and the number of units sold are the same.

In this case, instead of looking at the number of units needed to earn zero profit we are looking at the number of units where the profit is the same for two different processes.

Profit Current = Profit Streamlined

Don't round any values until the end of the problem and then round to two (2) decimal places.