Use below information for Questions $4$ to $6$:

G$$rses Inc. produces two types of products, Type A and Type B$.$ Type A is sold for $$155$ and has variable costs of $$95.$

Type B sells for $$166$ and has variable costs of $$88.$

G$$rses Inc. sells two Type A for every three Type B sold. Fixed costs equal $$1,250,000.$

Q$-4)$ What is the breakeven point in total dollars at the current sales mix?

Q$-5)$ M$$nir Nurettin Bey, the owner of G$$rses Inc., is considering buying new production equipment. The new

equipment will increase fixed cost by $$250,000$ per year and will decrease the variable cost of the Type A and Type

B by $$5$ and $$10,$ respectively. Assuming the same sales mix, how many of Type A does G$$rses Inc. need to sell to

break even?

Q$-6)$ Assuming the same sales mix, at what total sales level would G$$rses Inc. be indifferent between using the old

equipment and buying the new production equipment?