Question: One company is considering developing the current manufacturing method and you have the following data on both alternatives: Items Current method Proposed method Fixed cost

One company is considering developing the current manufacturing method and you have the following data on both alternatives:
Items
Current method
Proposed method
Fixed cost
BD 15000
BD 21000
Variable cost per unit
BD 4
BD 2
Sales price per unit
BD 10
BD 10
1. At what point in sales volume, the two alternatives will be the same?
2. Which alternative is better if you know that the production and sales capacity of the current and the proposed method is 5,000 units?

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