Boston’s Dairy has just opened its main yogurt factory inupstate Massachusetts. This main factory can produce 3,500 boxes ofyogurt monthly (each box contains twelve 6-oz cups). Due tooverwhelming demand for the company’s product, Boston’s Dairy hassigned a contract to rent a new factory, which can produce up to8,000 boxes per month. The monthly total fixed costs are $40,000 inthe main factory and $16,000 in the new factory. The variableproduction cost of yogurt is $4.50 per box in the main factory. Thevariable production cost in the new factory is $6.0 per box asmaterials have to be redistributed from the main factory. Theaverage selling price is $15, and the variable selling expense is$1 per box, which is the same for all factories. In addition,Boston’s Dairy plans to pay its sales force $0.80 per box as addedbonus for every box sold above the break-even point. How many boxesdoes the company have to produce and sell in order to earn a netoperating income of $10,000 per month (round all decimal up to onebox)
