Question: A car component can be produced by either of two manufacturing methods, method A or method B . For method A the fixed costs are
A car component can be produced by either of two manufacturing methods, method A or method B For
method A the fixed costs are per year and the variable costs are per component. For
method the fixed costs are per year and the variable costs are per component.
Calculate the breakeven quantity per year, for which the cost of manufacture is the same whichever
method is used.
Give your answer as an exact value.
Breakeven quantity:
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