Management of abc company is considering new production

Reference no: EM13602632

Management of ABC Company is considering new production robotics to replace some current manual labor operations for one of their product lines. ABC's current cost structure for this product line consists of variable expenses of $40 per unit and fixed expenses totaling $86,400 per month.

If the robotics were installed, variable expenses would drop to $28 per unit, but fixed expenses would increase to $135,600 per month.

Calculate the indifference point between the alternative cost structures for ABC Company's product line.

Reference no: EM13602632

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