Question: Case 2 Below are production cost data for two different method of making file cabinet: Automated Assembly Method Manual Assembly Method 60 $ 54 15

Case 2 Below are production cost data for two different method

Case 2 Below are production cost data for two different method of making file cabinet: Automated Assembly Method Manual Assembly Method 60 $ 54 15 Direct materials Direct labor Variable overhead Annual fixed manufacturing cost Sales price 40 10 88,000 280,000 135 135 Required: 1. Compute the cost indifference point. 2. Determine the production method that should be used at 9,200 units of production

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