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. The unit that attaches to the faucet is sold for $80 and has variable costs of $30. The pitcher filter sells for $110 and has variable costs of $40. Pure Water sells two faucet models for every three pitchers sold. Fixed costs equal $1,050,000.

REQUIRED:

1. Pure Water is considering buying new production equipment. The new equipment will increase fixed costs by $180,000 per year and will decrease variable cost of the faucet and pitcher units by $5 and $8, respectively. Assuming the same sales mix, how many of each type of filter does Pure Water need to sell to breakeven?