Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has two choices:
A. make major modifications at a fixed cost of $33000
or
B. Purchase new equipment at a net fixed cost of $62000.
If the firm chooses to make modifications, variable materials and labor will be $24.20 per board. If it buys new equipment, variable costs are estimated to be $15.30 per board.
What is the minimum sales quantity that would justify the purchase of new equipment?