MINI CASE: Arm and Hammer is considering changing from its traditional box package that it's used historically to a shaker container for use near the sink.The new packaging machine is expected to cost $1,000,000.The additional variable cost for each shaker is $.10 (over the traditional "orange" box).The firm believes that it can get an additional $.50 per shaker (over a like amount in the orange box) due to the added consumer convenience such a package will offer.

Further research indicates that many consumers would be interested in small sized shakers if they were this convenient to use.The packaging can be used for a wide range of shaker sizes with no additional cost.The variable cost for a smaller shaker is $.05.The firm believes that it can get additional $.30 on the smaller sized package.(These costs and prices are in comparison to the old orange box). What is the break-even point for the smaller package?

1. 200,000
2. 2,500,000
3. 4,000,000
4. 500,000