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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.
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