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An industrial product may be manufactured using two methods of production. Using Method X, fixed costs are £2,300,000 per period and variable costs are £215 per unit of product. Using Method Y, fixed costs are £2,500,000 per period and variable costs are £190 per unit of product.
(a) Calculate the level of output for which the total cost of production using Method X is equal to the total cost of production using Method Y.
(b) Calculate the total cost of production per period for Method Y at this output.
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