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Name System A System B System C

Fixed Cost 1,600,000 2,000,000 3,000,000


Variable Cost 800 500 100

Units A B C
0 1,600,000 2,000,000 3,000,000
500 2,000,000 2,250,000 3,050,000 5,000,000
1000 2,400,000 2,500,000 3,100,000
1500 2,800,000 2,750,000 3,150,000 4,000,000
1900 3,120,000 2,950,000 3,190,000
2000 3,200,000 3,000,000 3,200,000
2500 3,600,000 3,250,000 3,250,000 3,000,000
2700 3,760,000 3,350,000 3,270,000
3000 4,000,000 3,500,000 3,300,000 2,000,000
3500 4,400,000 3,750,000 3,350,000
4000 4,800,000 4,000,000 3,400,000 1,000,000

From the crossover charts we can see that


if the volume is under 1500 we should use system A
If the volume is between 1500 - 1900 we should use system B
if the volume is above 1900 we should use system C
C

B
A

500 1000 1500 2000 2700

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