Question: 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
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.
In terms of number of shakers, what is the break-even point?
a)250,000
b)2,500,000
c)1,000,000
d)500,000
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