:

Fixed Costs:

Copy Editing $

6,110

Artwork $

2,250

Typesetting $

70,853

Variable Costs per copy:

Printing and Binding $

3.17

Bookstore Discounts $

4.14

Sales Commissions $

0.59

Authors Royalties $

2.44

Each novel copy sells for $

24

Last month the company sold in copies:

10,771

Production manager suggests to buy an additional machine for

$5,250

cost per month and will decrease the variable cost by

$2.25

per copy

Required: Calculate the indifference point (in copies) for the proposed production system and the existing system

Round your answer to the nearbest copy (unit).