Find what volume annual total cost of each system be equal

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Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, Data relevant to the systems follows.

MODEL NO. 6754:

Variable Costs, $17.00 per unit

Annual Fixed Costs, $986,200

MODEL NO. 4399

Variable Costs, $12.80 per unit

Annual Costs, $1,114,600

Corrigans selling price is $68 per unit for the universal gismo, which is subject to a 15 percent sales commission ( in the following requirements, ignore income taxes).

Question 1: At what volume will the annual total cost of each system be equal? ROUND answer up to nearest whole number.

Reference no: EM132565427

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