Ted is a producer in the perfectly competitive market for sandwiches. Ted produces his profit-maximising quantity of 55 sandwiches at the market price of $4.00 per sandwich. At this output, his average variable cost is $2.80 per sandwich and his average total cost is $3.10 per sandwich. His minimum average variable cost is $2.70 per sandwich.

If the market price begins to fall below $4.00 per sandwich, and Ted's costs remain unchanged, Ted will need to begin loss minimising once the market price falls below what?