How do I find the indifference point ?

Problem: Letterman Office Service & Supply (LOSS) sells a variety of office equipment including the Executive office chair. The Executive sells for $200. Expected sales for next year are 5,000 units (sales estimates made by management are usually within 10%). LOSS is considering a change in its manufacturing process. The accountants and engineers have developed the following two cost structures: Current Manufacturing System: $150 variable cost per unit and $210,000 in fixed costs. Alternate Manufacturing System: $75 variable cost per unit and $570,000 in fixed costs. At what level of sales will LOSS be indifferent between the two manufacturing plans? Indifference Point in units What are the break-even points in units for the two manufacturing plans? 210,000 0,00-5) - C200-75) 41 Sbo 4500 Current System break-even 4, 200 Current System break-even: ' I Alternate System break-even: What are the margins of safety of the two plans in units and percentage? 00 S,000 41200 0O