Question
Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other
Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Revenue and cost information for each product appears below:
the unit that attaches to the faucet is sold for $70 and has variable costs of $30
the pitcher-filter sells for $80 and has variable costs of $45
fixed costs total $424,000
Pure Water sells 4 faucet models for every 3 pitcher-filters sold
Calculate the number of units of the pitcher-filters that must be sold in order for Pure Water Products to break-even.
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