Answer:
The number of books produced at which the costs from the two methods be the same is 4668 books
Step-by-step explanation:
Here, we have
For the first production method
Fixed cost = $65,054 and variable cost per book = $8.25
For the second production method
Fixed cost = $12,539 and variable cost per book = $19.50
Therefore, let the number of books at which the to methods cost the same be M, we then have
$65,054 + $8.25 × M = $12,539 + $19.50× M
Which gives
$65,054 - $12,539 = $19.50× M - $8.25 × M
$52515 = $11.25 × M
M = $52515/$11.25 = 4668 books.
