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Equipment Production Cost Comparison

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I want to compare 2 pieces of equipment to determine when the sales level, in units, and the cost will be the same for both pieces of equipment.

I know the capacity related costs, flexible costs per unit and the sales price per unit for each piece of equipment. How do you determine when the cost will be the same?

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Solution Summary

The solution explains how to compute the answer, and also includes an attachment which gives great details for using some Excel commands to build graphs.

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Equipment 1 Equipment 2

flexible costs per unit X1 Y1
capacity related costs ...

Solution provided by:
Champake Mendis, MEngSc, PhD
Education
  • BSc (Hons), University of Colombo - Sri Lanka
  • MEngSc, University of Melbourne
  • Certificate IV in Training & Assessment , Australian Business Council
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