BBC is deciding whether to weld bicycle frames manually or to purchase a welding robot. If welded manually, investment costs for equipment are only $10,000. The per-unit cost of manually welding a bicycle frame is $50.00 per frame. On the other hand, a robot capable of performing the same work costs $400,000. Robot operating costs including support labor are $20.00 per frame. At what volume would BBC be indifferent to these alternate methods?


Please help. This is really throwing me for a loop. The formula for break even is Q= F over p-c.

This problem doesn't mention anything about price, I have no idea. I just took the fixed costs 10,000 and divided by 50 and came up with 200 as a BEP.

For the second part I took 400,000 divided by 20 and got 20,000.

I have no idea what they mean by "indifferent" Please help.