Provision plc makes luxury hampers for sale in a chain of high-class department stores.Provisionproduce hampers with avariable cost of $40perhamper; its fixed costs are$800,000 per year.Thehampers sell for$80 per hamper.

Sales go well, but the buyer puts pressure on Provision to reduce its prices. In the followingfinancial year Provisionreduces the selling price to$75 per hamper.The variable costisexpected to rise in price by 15%, but Provision is planning to cut itsfixed costs by 10%.

Calculate Provision'snewbreak-even quantity.