Price of an environmentally friendly water bottle is $10 and the variable cost is $5.50. At this price, 4000 bottles are sold in July 2017. If in August 2017, the price of the bottle is dropped by 5%,how many units of bottlesshould be sold to maintain the contribution margin as it was in July 2017. In addition, if in August 2017, the variable cost also increases by $800,what would be the new break even sales?

(Do write out your assumptions, if any)