Answer:
For the cost from the two methods to be equal, 3,200 books have to be produced
Step-by-step explanation:
In this question, we are asked to calculate the number of books that will be produced for two methods of production having different fixed and variable costs to have the same production cost.
Since the number of books is something we do not know, let’s represent it with a variable called c.
For the first production method, the cost of production will be ; 58,881 + 8.50c
For the second production method, the cost of production will be; 18,081 + 21.25c
Now since they are said to be equal, we proceed to equate both;
58,881 + 8.5c = 18,081 + 21.25c
58,881-18,081 = 21.25c - 8.5c
40,800 = 12.75c
c = 40,800/12.75
c = 3,200 books
