An industrial product can be manufactured by two different methods of production. Using Method X, fixed costs are RM455,000 and variable costs are RM15 per product. Using Method Y, fixed costs are RM395,000 and variable costs are RM21 per product. At what volume of output, would the two methods incur the same costs. O 23,610 units O 10,000 units O 15,000 units O 16,600 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An industrial product can be
manufactured by two different
methods of production. Using
Method X, fixed costs are
RM455,000 and variable costs are
RM15 per product. Using Method Y,
fixed costs are RM395,000 and
variable costs are RM21 per product.
At what volume of output, would the
two methods incur the same costs.
O 23,610 units
O 10,000 units
O 15,000 units
O 16,600 units
Transcribed Image Text:An industrial product can be manufactured by two different methods of production. Using Method X, fixed costs are RM455,000 and variable costs are RM15 per product. Using Method Y, fixed costs are RM395,000 and variable costs are RM21 per product. At what volume of output, would the two methods incur the same costs. O 23,610 units O 10,000 units O 15,000 units O 16,600 units
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